Day 1 FW Summer 2014

Welcome to EconomicsStudent information sheets

• Helps me to change lessons based on interest and your needs

• Helps me to learn your names

• Helps you to get in an economics state of mind

• Name Plates: First Name, Last Initial city, state, country of birth

Joe Mama Eureka, CA

Economics Summer 2014Flowing Wells High School

Mr. [email protected]

Session 2: June 23– July 10

Past: 2007 – Marana HS

2008 – Mountain View HS

2011 – Tucson High School

2014 – Mountain View High School

Economics Summer 2014• Rules and Regulations

• The bell

• Raise hands

• Cell phones

• IPods

• drinks

• Lateness & Breaks

• Summer School rules

• Any questions?

Today’s topics

• Rules

• Opening grades

• What is “economics”?

• Economic Vocabulary

• Opportunity costs

• Factors of Production

• Economic System

• Entrepreneurship

Economics Summer 2014

• Syllabus

• Stuff to bring:

• Pencil/pen

• Calculator

• Notebook

• Partner

• Any questions?

Economics Summer 2014 Grading “How do I get an A?”

€ 30% in class assignments and short quizzes

¥ 10% midterm test, next Wednesday Day 7

$ 40% Economics Portfolio assignment due $ part 1 due at the end of week 1, parts 2-4 due on day 10

₤ 20% Final Exam, ~75 questions

Economics Summer 2014• Economics portfolio assignment Folder, CD

Your choice of 5 of the following assignments– Visit a grocery store assignment– Current economics event report– EBay auction report– Interview a manager– Developing nation profile paper– Product market analysis– Economic problem & solution paper– 5 page illustrated children’s book– Produce a you tube video advertising an economic concept

1st Assignment – Sheet of paper1. Why did you choose to come to school today?

2. If you weren’t here right now what would you be doing?

Opportunity Cost• Next best option

• Example: What you gave up to be here

• “I don’t get paid to be here”.

What is economics?

• Study of how people make choices

• You made a choice by coming to class today

• But that choice also has a cost

Economics• People face trade-offs

• Hundreds of choices each day

• Every choice means you refuse something else

• Examples?

Economists• Study how

people make choices

• Influential but not always famous

• Only 1 US president with econ degree

Alan GreenspanBen Stein

Choice this morning

• Get up when alarm goes off

OR

Hit the snooze

Choice #1Get up when alarm goes off

Choice #2Snooze for 10 more minutes

At least 2 benefits

Check the one you did todayBenefits refused

#3

Choosing is refusing

• Your next best option:

• Opportunity cost

• All choices involve cost

4. Household example

5. Government example

6. Other example

Economics?The science of how people seek to satisfy their

needs and wants by making choices based on scarce resources

Essentially, how people interact and trade with one another

Mercantilism1500’s-1700’s

• An economic theory that the prosperity of a nation depends upon its capital, or wealth, trade among nations was considered bad

• “Protectionism”– By the state

The Enlightenment 1700’s

• European philosophers began to rethink society, specifically: nature, slavery, religion, trade

Adam Smith

• 1776 publishes “Wealth of Nations”

• Mercantilism is wrong

• Government intervention is wrong

• Trade is good for all parties

Economics as a field

Economics

Finance

Industrial Organization

Sociology

Marketing

Public Choice

Resource Management

Cousin to Accounting

Combines, history, math, psychology, political science

Economist• A person who studies Economics

• Analyze, explain, predict

Ben Stein in Ferris Buhler’s Day Off

Show Dangerfield clip

Problem for humans

• People have unlimited wants

• People have limited resources to get those wants

• We call this problem: Scarcity

Opportunity Cost

• What you give up to do something

• “The next best option”

• For example: If you have $20 in your pocket and you want to take your BF/GF to the movies, then you won’t have any money left for a new $20 shirt

Opportunity Costs of Going to College

Source: US Bureau of Labor Statistics

Assuming a person works for 45 years, how much more will the person with a bachelor’s degree make over a person with only a high school diploma?

What’s the other problem for people without high school diplomas?

52 weeks in 1 year

Assuming a person works for 45 years, how much more will the person with a bachelor’s degree make over a person with only a high school diploma?Without: $595 X 52 = $30,940/yr X 45 = $1,392,300With Degree: $962 X 52 = $50,024/yr X 45 = $2,251,080

On average, is it worth it?What’s the other problem for people without high school diplomas?

It depends!

In millions of dollars; based on 1997-1999 work experience

Source: US Bureau of Labor Statistics

Why is this important?

Next Assignment1. Describe a time you received something for

“free”

(What was it, where was it, when was it, etc)

2. Describe the role of the government in our economy?

Opportunity Cost• Next best option

• Example: What you gave up to be here

• “I don’t get paid to be here”.

There Is No Such Thing as A Free Lunch

• Opportunity Cost

• There is no such thing as a free lunch (or breakfast)

• TNSTAFL

There Is No Such Thing as A Free Lunch

There Is No Such Thing as A Free Lunch

• Opportunity Cost

There Is No Such Thing as A Free Lunch

There Is No Such Thing as A Free Lunch

There Is No Such Thing as A Free Lunch

Example?

One paper per groupWhat if stuff was “free”?

Create a cost/benefit analysis for each societal choice

1.College doesn’t cost $$2.Dr. visits don’t cost $$3.Drive on highways cost $$4.All radio paid, like Pandora

or XM5.Music & movie downloads

now legal6.Make up one of your own

Benefits Costs

At least 2 At least 2

One paper per groupWhat if stuff was “free”?

Create a cost/benefit analysis for each societal choice

(Jorge)

1.“Free” college2.“Free” doctor visits3.No free roads “toll roads”4.No free radio, like Pandora

or XM5.All movie & music downloads

“free” and legal6.Make up one of your own

Benefits Costs

At least 2 At least 2

Lets analyze a how a business works

• Economists call a business or non-profit: a “firm”

What economic opportunities do you see in this picture?

May 2008

Factors of Production• Items we need to be in business

• 3 categories + 4th idea

Land• Any natural resource

• Not made by people

• Examples?

Labor• People working

• Wages $

• Benefits

Human Capital• Skills, experience, education a person has• It’s the reason doctors are paid more than sandwich

artists

Capital• Goods used to create other goods/services

• Usually the largest cost for entrepreneurs

• Explanation for “Capitalism”

Let’s build a new Circle K!

• Land

• Labor

• Capital

New Ideas!• Entrepreneur – French word

• Person who takes a risk and starts a new business– OR comes up with a new idea

within a business

Empresario

1. What are your two favorite companies?

2. Explain why you like those 2 companies

3. What three types of things do you need to start a company?

Group Discussion questions

How old are personal computers?

1989

Entrepreneurs still open for business

Source: Scott Shane Small Business Trends

• Risk takers who create new companies• Often make new products or services • Best companies solve problems or make life

easier• Family members?

• 52% new US businesses failed between 1977 – 2000

• Why do they still try?

• Why are they so important, especially in 2013?

Entrepreneurs

• 25 minutes

• NO LOOKING THEM UP ON INTERNET

• Group that guesses all correct:

1st place: 5 quantitative easing points

2nd place: 3 quantitative easing points

3rd place: 1 quantitative easing points

Reading on famous Entrepreneurs

Group Activity “Entrepreneurship”

• Groups of 3, Design a brand new business

One a single sheet of paper with everyone’s name answer these ?