Welcome to Economics

Mr. Potter and Mr. DaughertyFirst, Second, Third, Fourth, and Seventh Periods

EconomicsAugust 3, 2015

1. Why is it necessary to take a course in economics? 2. What exactly is economics the study of? 3. What are some of the reasons people trade? 4. What are some of the reasons people work? Why do

people make products? Why do some people in business take risks? Why do you come to school?

5. Can you satisfy all your wants? 6. List four companies that sell products in the US.

Economic Theme #1

Gain from TradeParties trade voluntarily when they

expect to gain.People trade because they need one

item and another person or country can provide this item.

Economic Theme #1

ExamplesClothing from China.Oil from Saudi Arabia.Cars from Japan.

Economic Theme #2

IncentivesParties respond predictably to positive

and negative incentives.An expectation that encourages people

to behave a certain way.Hope of reward or a fear of punishment

Economic Theme #2

Examples Incentive of good deals will make a

consumer buy more. Incentive of profit so you take a risk to start a

business. Incentive of a good job so you stay in school. Incentive of a new car so you save money.

Economic Theme #3

InterdependencyA decision make by one party has

intended and unintended consequences on other parties.

When events in one country’s economy influence other economies as well.

Economic Theme #3

ExamplesDrought in Costa Rica hurts coffee

bean crop.Major hurricane in the Gulf of Mexico

damages oil refineries.Disease destroys chicken crop, egg

prices rise.

Economic Theme #4

ScarcityScarcity of all resources forces parties

to make choices and that these choices always incur a cost.

Limited quantities of resources to meet unlimited wants.

Economic Theme #4

ExamplesThe list is endless!!!Not the same thing as a shortage.Land might not be considered a scarce

resource.

Stock Market Game

List five companies that sell products in the United States.

Ticket Out the Door

1. What is economics the study of? 2. What will people do when they expect to gain

something? 3. When Hurricane Katrina damaged oil

refineries, this was an example of which theme? 4. Saving money to buy a nice car is an example

of which economic theme? 5. List three companies you might purchase

stock in when we play the stock market game.