BELL RINGEROPEN UP CANVAS FIND TODAYS BELL RING
BELL RINGER-OPEN UP CANVAS, FIND TODAY’S BELL RING ASSIGNMENT AND FOLLOW THE DIRECTIONS
CHAPTER 1 Economic Decisions and Systems 1 -2 Economic Choices
REVIEW: TRUE OR FALSE? Resources are unlimited. • Natural Resources? • Human Resources? • Capital Resources?
TRUE OR FALSE? Wants and Needs are unlimited TRUE!!!!! Does this cause a problem?
THE BASIC ECONOMIC PROBLEM • Mismatch between unlimited wants and needs and limited economic resources • Scarcity- not having enough resources to satisfy every need Examples (name the type of economic resource for each): • A country may not produce enough food for their citizens • Schools have a limited budget for extra curricular activities • A business may want to expand but needs more land • A country may want better health care for citizens, but does not have enough doctors or hospitals • A family may want to have high speed internet, but have limited income
CHOICES • In each example, as choice must be made • The process of choosing which needs and wants will be satisfied is called: Economic Decision-Making
TRADE-OFFS AND OPPORTUNITY COSTS • When you give up something in order to have something else, you are making a trade-off • Example- You have $25 to either go to the movies with your friends or buy your Mom a birthday gift. Whichever you choose there is a trade-off; you MUST give up one to have the other • The opportunity cost is the VALUE (not necessarily in dollars) of the other choice- if you give buy your Mom a gift, the opportunity cost is the enjoyment you would have had going to movies • Business and opportunity costs: example should a business expand by buying more land or buy better equipment?
DECISION MAKING PROCESS 1. Define the Problem- clearly defined 2. Identify the Choices- can be many alternatives 3. Evaluate the Advantages and Disadvantages of Each Choiceconsider trade-offs and opportunity costs 4. Choose the Best Alternative-choose the one that YOU believe is best 5. Act on Your Choice- Just do it! Do not get bogged down on worrying if it was the right choice, as this is not always clear until later. 6. Review Your Decision- Once time goes by, it may become clearer if you made the right choice. MISTAKES are great, but ONLY if we learn from them.
• http: //tinyurl. com/tesladecision • http: //blogs. marketwatch. com/energy-ticker/2014/06/16/tesla-shares-reach-highestprice-in-months-on-supercharger-report/
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