Bellringer

1. What is you favorite food you like to buy?

2. What is the price of that item?

3. What is something you hate to eat?

4. Estimate the price of that food?

Use a full sheet of paper, we will answer some questions later and turn it in

• What is the best conclusion to this graph:

A. There are more teens having babiesB. There are fewer teens having babiesC. Latino adults have more babies than the national averageD. There aren’t as many Asians in the US as Whites

How does our economy work?• Done with marco, onto micro

Imagine if we couldn’t make choices

• What would life be like?

• Lucky for us…..

Economic questions for your household

1. What to produce?

2. How to produce?

3. How much to produce?

4. How much does each person consume?

Economic questions for every society

1. What to produce?

2. How to produce?

3. How much to produce?

4. How much does each person consume?

Barack ObamaPresident of USA

Naoto Kan prime minister of JapanMexican President Enrique Pena Neito

Quick Notes: Value, in economic terms

2 ways economists measure value of a good/service:

1. Price – (How much are you willing to pay?)

2. Utility (how happy does this make me?)

Paradox of Value• Some items have low prices and high

usefulness (water)

• Others are almost useless, but have high prices (diamonds)

How does our economy work?1. Write down your good/service2. Is this a physical good or service? 3. Scale of 1-10, what is your utility with this good/service4. In terms of price, how much do you think this good/service is

worth?5. How many trades did you make? What other goods did you

trade for?6. What is your final good?7. What is its utility? (scale 1-10)8. Estimate the price of your final good/service.9. Graph class happiness after each of the 4 rounds.10. Describe the effect of trade on our class happiness.11. What was the opportunity cost of the good/service in #6 in $$

$.12. If Mr. Klein charged you $50 every time you made a trade,

how would this have affected your decisions?13. Write an economic generalization based on this activity.

(in other words, what’s the big idea?)

Adam Smith’s invisible hand

• Laissez faire

• Market based economy

• How did your pencil get made?

• I pencil

Today on a full sheet of paper

What happened in 1776?• Enlightenment• Philosophy• Adam Smith• Scottish economist• Wealth of Nations• “How does it work?”• Pages 43-46• Read trying to answer:• 4 economic questions

according to our system• Take Cornell notes on 5 parts

of our system• For each part define and

write a sentence of why its important for our economy

On your BR• Write summary that answers: “How does our

economy work?” using the 5 parts

40 gallons of gasoline

$30 Tucson Mall Giftcard

$75 Barnes & Noble Giftcard

10 Anime Film Festival ticketsPS4

1 Case of Energy Drinks $200 at skate shop

2 tickets to Chivas vs. America

4 NFL Season tickets to the team of your choice

1 year Kickboxing Gym Membership

100 hours recording studio time

$40 Amazon.com gift card

6 tickets to U of A vs. ASU football game

1 semester art school tuition

Ipod nano Small 2 acre Onion Farm Honda ATV

$400 at tennis pro shop

New Bowling ball with your name engraved

$75 Dairy Queen giftcard Internship with KROQ in

Los Angeles

$75 Dominos Pizza gift card

1 semester art school tuition

2 In And Out Burgers each day for 1 year

$50 at Walmart

1 used 2002 era laptop computer

1 broken down truck (needs new transmission)

2 dairy cows

$50 at Walmart

2 In And Out Burgers each day for 1 year

2 tickets to Chivas vs. America

1 Fender electric guitar

100 itunes downloads

$100 at Bare Escentuals

8 new truck tires

1 semester at Scottsdale Culinary Institute

4 Red Sox vs. Devil Rays tickets

$50 Starbucks giftcard

Internship with LA Times

Honda Dirtbike

1 Case of Energy Drinks

$200 at skate shop

1 semester art school tuition

2 tickets anywhere Southwest Flies