Complete Step 1 of the Lost at Sea Ranking Chart individually

Step 2-Your Group RankingIn groups of 4 or 5, you and your partners must decide on a common ranking for the Lost at Sea Chart. Each member must have the same ranking for step 2, and you must be able to justify your response.

Step 3-Coast Guard Ranking-Shaving Mirror

-Can of Petrol

-Water Container

-Emergency rations

-Plastic sheet

-Chocolate bars

-Fishing rod

-Rope

-Floating seat or cushion

-Shark repellent

-Bottle of rum

-Radio

-Sea chart

-Mosquito net

-Sextant

Discussion-What influenced your decision making process?

-Why did you have to rank the value of the items?

Objectives-We will examine the basic principles of economics.

By the end of today…

-I will be able to state the difference between scarcity and shortage.

Agenda

-Lost at Sea

-Brainstorm

-What is Economics?

-Scarcity v. Shortage

-Exit Ticket

AppetizerBrainstorm a list of the things you could possibly want

Discussion-If given a whole day, how much could you add to your list?-How do you decide which items to acquire and which items to wait for?-If you could afford all of the items on your list, would there be more things you would want to buy?

Economics-How people decide to use their limited resources for their unlimited wants

-Resource: anything used to produce an economic good or service

It is NOT just about the money-Economics deals with things of any VALUE, not just monetary value

-Everyone has different values and different wants

What do Economists do?•Economics works to explain why things are the way they are

•Explains how and why people use their resources

•Resources are important because they are scarce

•Explains how and why people make the life decisions that they make

Economy-An economy deals with how a country or government uses or utilizes its limited resource to get the most out in production and consumption of goods and services.

What are examples of Limited Resources here in ‘Murica?

Scarcity-limitedness of a specific resource

-occurs at all times for all goods

Shortage-occur when producers will not or cannot offer goods or services at current prices.

-Shortages are temporary.

Macroeconomics vs. Microeconomics

•Microeconomics – looks at the decisions made on a small scale–Examples: individuals, households, businesses

•Macroeconomics – looks at the decisions of the economy all together (entire economy)

Positive vs. Normative Economics

•Positive Economics – uses analysis to explain how things are

•Normative Economics – uses analysis to find the greatest values in each decision made (how things ought to be)

Scarcity or Shortage???

Complete the worksheet either individually or with a partner

Scarcity-There will never be any more songs written/recorded by the Beatles

1) Newly-discovered Beatles recordings are released to an auction house for sale. Recordings are expected to bring up to $1.5 million each.

Shortage-milk is still being produced and is still available in other areas

2) Milk truck drivers across the Commonwealth go on strike. Delivery for milk to Hershey’s plant is

nearly stopped.

Shortage-if a local issueScarcity-if a nationwide/global issue

3) High temperatures and low rainfall scorch crops. Grain prices expected to rise.

Scarcity-There is a finite amount of gold

4) Gold tripled in value over the past 10 years.

Shortage

5) War in the South during the Civil War destroyed farmers’ fields. People didn’t have enough to eat.

Shortage-the demand for nurses will create new incentives that will encourage more people to become

nurses

6) Nursing schools are not graduating enough qualified nurses to fill open positions at many

hospitals.

Shortage-production will continue to even after the holiday season and stores will be able to order more

7) During the holiday season, Thomas the Tank Engine toy shelves were bare.

Scarcity-There will never be more hours in the day

8) There just aren’t enough hours in a day to complete all the work I have to do!

Shortage-necessary food is available elsewhere in the world and just needs to be delivered

9) People are starving in Africa.

Scarcity-There aren’t any more of these heirlooms available.

10) You take a family heirloom to Antiques Road Show and it is appraised for $500, 000.

Exit Ticket!!