1. Welcome to Economics
Student information sheets
• Helps me to change lessons based on
interest and your needs
• Helps me to learn your names
• Helps you to get in an economics state of
mind
• Name Plates: First Name, Last Initial
city, state, country of birth
Joe Mama
Eureka, CA
2. Economics Summer 2015
Flowing Wells High School
Mr. Klein
Travis.klein@fwusd.org
Session 1: June 1– June 18
Past: 2007 – Marana HS
2008 – Mountain View HS
2011 – Tucson High School
2014 – Mountain View HS
& FW High School
2015 - FW High School
3. Economics Summer 2015
• Rules and Regulations
• The bell (“eyes on me”)
• Raise hands
• Sticks and slates
• Cell phones & ipods
• drinks
• Lateness & Breaks
• Summer School rules
• Any questions?
4. Today’s topics
• Rules
• Opening grades
• What is “economics”?
• Economic Vocabulary
• Opportunity costs
• Factors of Production
• Economic System
• Entrepreneurship
6. Economics Summer 2015
Grading “How do I get an A?”
€ 30% in class assignments and short quizzes
¥ 10% midterm test, next Wednesday Day 7
$ 40% Economics Portfolio assignment due
$ part 1 due at the end of week 1, parts 2-4 due on day 10
₤ 20% Final Exam, ~75 questions
7. Economics Summer 2015
• Economics portfolio assignment Folder, CD
Your choice of 5 of the following assignments
– Visit a grocery store assignment
– Current economics event report
– EBay auction report
– Interview a manager
– Developing nation profile paper
– Product market analysis
– Economic problem & solution paper
– 5 page illustrated children’s book
– Produce a you tube video advertising an economic concept
8. 1st
Assignment – Sheet of paper
1. Why did you choose to come to school today?
2. If you weren’t here right now what would you
be doing?
9. Opportunity Cost
• Next best option
• Example: What you gave up to be here
• “I don’t get paid to be here”.
10. What is economics?
• Study of how
people make
choices
• You made a choice
by coming to class
today
• But that choice also
has a cost
11. Economics
• People face trade-
offs
• Hundreds of choices
each day
• Every choice means
you refuse something
else
12. Economists
• Study how
people make
choices
• Influential but
not always
famous
• Only 1 US
president with
econ degree
Alan Greenspan
Ben Stein
14. Choice #1
Get up when
alarm goes off
Choice #2
Snooze for 10
more minutes
At least 2
benefits
Check the
one you did
today
Benefits
refused
#3
15. Choosing is
refusing
• Your next best option:
• Opportunity cost
• All choices involve cost
4. Household example
5. Government example
6. Other example
16. Economics?
The science of how people seek to satisfy their
needs and wants by making choices based
on scarce resources
Essentially, how people interact and trade with
one another
17. Mercantilism
1500’s-1700’s
• An economic
theory that the
prosperity of a
nation depends
upon its capital,
or wealth, trade
among nations
was considered
bad
• “Protectionism”
– By the state
The Enlightenment
1700’s
• European
philosophers
began to rethink
society,
specifically:
nature, slavery,
religion, trade
Adam Smith
• 1776 publishes
“Wealth of
Nations”
• Mercantilism is
wrong
• Government
intervention is
wrong
• Trade is good
for all parties
18. Adam Smith Primary Source
• 1776 – Wealth of Nations
• Read with partner, who are the characters?
• What are the important parts? What should
happen?
19. Economics as a field
Economics
Finance
Industrial Organization
Sociology
Marketing
Public Choice
Resource Management
Cousin to Accounting
Combines, history, math, psychology, political science
20. Economist
• A person who studies Economics
• Analyze, explain, predict
Ben Stein in
Ferris Buhler’s Day Off
Show Dangerfield clip
21. Problem for humans
• People have unlimited wants
• People have limited resources to get
those wants
• We call this problem: Scarcity
22.
23. Opportunity Cost
• What you give up to do something
• “The next best option”
• For example: If you have $20 in your
pocket and you want to take your BF/GF
to the movies, then you won’t have any
money left for a new $20 shirt
25. Source: US Bureau of Labor Statistics
Assuming a person works for 45 years,
how much more will the person with a
bachelor’s degree make over a
person with only a high school
diploma?
What’s the other problem for people
without high school diplomas?
52 weeks in 1 year
26. Assuming a person works for 45 years, how much more
will the person with a bachelor’s degree make over a
person with only a high school diploma?
Without: $595 X 52 = $30,940/yr X 45 = $1,392,300
With Degree: $962 X 52 = $50,024/yr X 45 = $2,251,080
On average, is it worth it?
What’s the other problem for people without high school
diplomas?
It depends!
27. In millions of dollars;
based on 1997-1999 work experience
Source: US Bureau of Labor Statistics
Why is this important?
28. Opportunity Cost
• Next best option
• Example: What you gave up to be here
• “I don’t get paid to be here”.
29. On your slates
1. Describe a time you received something for
“free”
(What was it, where was it, when was it,
quality?)
2. Describe the role of the government in our
economy?
30. There Is No Such Thing as A Free
Lunch
• Opportunity Cost
• There is no such
thing as a free
lunch (or breakfast)
• TNSTAFL
37. In your notes
What if stuff was “free”?
Create a cost/benefit analysis
for each societal choice
1.College doesn’t cost $$
2.Dr. visits don’t cost $$
3.Drive on highways cost $$
4.All radio paid, like Pandora or
XM
5.Music & movie downloads
now legal
6.Make up one of your own
Benefits Costs
At least 2 At least 2
39. One paper per group
What if stuff was “free”?
Create a cost/benefit analysis
for each societal choice
1.“Free” college
2.“Free” doctor visits
3.No free roads “toll roads”
4.No free radio, like Pandora
or XM
5.All movie & music downloads
“free” and legal
6.Make up one of your own
Benefits Costs
At least 2 At least 2
46. Human Capital
• Skills, experience, education a person has
• It’s the reason doctors are paid more than sandwich
artists
47. Capital
• Goods used to create other goods/services
• Usually the largest cost for entrepreneurs
• Explanation for “Capitalism”
48. Let’s build a new Circle K!
• Land
• Labor
• Capital
49. New Ideas!
• Entrepreneur – French word
• Person who takes a risk and
starts a new business
– OR comes up with a new idea
within a business
Empresario
50. 1. What are your two favorite companies?
2. Explain why you like those 2 companies
3. What three types of things do you need to
start a company?
Slates
53. • Risk takers who create new companies
• Often make new products or services
• Best companies solve problems or make life
easier
• Family members?
• 52% new US businesses failed between 1977 –
2000
• Why do they still try?
• Why are they so important, especially in 2015?
Entrepreneurs
54.
55. • 20 minutes
• NO LOOKING THEM UP ON INTERNET
• Group that guesses all correct:
1st
place: 5 quantitative easing points
2nd
place: 3 quantitative easing points
3rd
place: 1 quantitative easing points
Reading on famous
Entrepreneurs
