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1. Why did you choose to take this course?
2. What other advanced courses have you taken
during high school?
3. If you weren’t here right now, what one thing
would you be doing right now?
Write your name in/on it
Stickers or décor ok!
Back: Reverse, non-alpha glossary
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• Next best option
• What you gave up to be here
• “I don’t get paid to be here”.
What is economics?
• Study of how people
• You made a choice by
coming to class today
• But that choice also
has a cost
• People face trade-offs
• Hundreds of choices
• Every choice means you
refuse something else
Humans have limited
Limits on life?
Next best option
Next best trade off
3. Rational People Think at the Margin
• Cost benefit analysis
• Video clip
4. People Respond to incentives
5. Trade can make everyone better off
• Gain by profit
• “Buy low, sell high”
• Test it?
Value, in economic terms
2 ways economists measure value of
1. Price – (How much are you
willing to pay?)
2. Utility (how happy does this
Paradox of Value
• Some items have low prices and high
• Others are almost useless, but have high
Assignment, due next Monday 8/12/2013
1. Acquire the Mankiw text, either paper or
2. Read page “How to read this book” -2 easiest
and why, 2 new ideas and why
3. Write a worksheet or lesson to teach regular
students about opportunity cost & marginal
Can be the same paper or electronic: