Assignment: Yesterday we learned about the concept of

scarcity (limited resources) and how it is the basis for trade, among other things. Analyze Rhymefest’s “Devil’s Pie.” How does he describes the impact of economics on himself and those around him? What message is he trying to get across? Do you agree or disagree with him? What are some current events that this song might speak to (for instance, the auto industry bailout)?

What did we do?What did we learn?Did we check the blog?(no we didn’t)

Assigning Books (5th period)LectureDiscussionClicker Quiz

Super Happy Lecture Funtime!!!!!

The Battle of the Century

People use “wants” and “needs” interchangeably.

Wants are anything other than what is needed for basic survival.

Needs are things required for basic survival.

Food Shelter Clothing Air Water

Entertainment Education Health Care Transportation Jobs Money Peace/Safety Energy

How can you determine whether or not something is truly a need? How can needs be confused with wants?

Why aren’t money, jobs, and healthcare in the “need” column?

Spending decisions involve choices.Each available choice competes with

other available choices.Businesses, like individuals, must make

decisions about what & when to produce, and when to stop producing.

Societies face choices about how to utilize their resources in the production of goods and services.

Exchanging one thing for the use of another is called a trade-off.

Trade-offs involve opportunity costs, or the loss of one alternative when you choose another.

Considering the opportunity cost can help people make decisions.

Options Benefit Opportunity Cost

1 hour of extra study time

Grade of C on test

One hour of sleep

2 hours of extra study time

Grade of B 2 hours of sleep

3 hours of extra study time

Grade of B+ 3 hours of sleep

5+ hours of studying

Auditory/visual hallucinations

Lifetime of sanity

What are some choices competing for your income?

All resources are limited.

People compete for limited resources.

Scarcity exists because people cannot satisfy every want.

Unlike scarcity, shortages are temporary.

What is your most scarce resource? What competing uses do you have for that resource?

Land – natural resources and their location.

Labor – the work people do.Capital – manufactured goods used to

make other goods and services.Entrepreneurship – the ability to start

new business or create new products.Technology – the use of science to

develop new products and production methods