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

2. • What is the
best
conclusion to
this graph:
A. There are more teens having babies
B. There are fewer teens having babies
C. Latino adults have more babies than the national average
D. There aren’t as many Asians in the US as Whites

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

4. Imagine if we couldn’t make choices
• What would life be like?
• Lucky for us…..

5. 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?

6. Economic questions for every society
1. What to produce?
2. How to produce?
Barack Obama
President of USA
Mexican President Enrique Pena Neito
Naoto Kan prime minister of Japan
3. How much to produce?
4. How much does each person consume?

7. 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?)

8. Paradox of Value
• Some items have low prices and high
usefulness (water)
• Others are almost useless, but have high
prices (diamonds)

9. 1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
How does our economy work?
Write down your good/service
Is this a physical good or service?
Scale of 1-10, what is your utility with this good/service
In terms of price, how much do you think this good/service is
worth?
How many trades did you make? What other goods did you
trade for?
What is your final good?
What is its utility? (scale 1-10)
Estimate the price of your final good/service.
Graph class happiness after each of the 4 rounds.
Describe the effect of trade on our class happiness.
What was the opportunity cost of the good/service in #6 in $$
$.
If Mr. Klein charged you $50 every time you made a trade,
how would this have affected your decisions?
Write an economic generalization based on this activity.
(in other words, what’s the big idea?)

10. Adam Smith’s invisible hand
• Laissez faire
• Market based
economy
• How did your
pencil get made?
• I pencil

11. Today on a full sheet of paper

12. •
•
•
•
•
•
•
•
•
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

13. On your BR
• Write summary that answers: “How does our
economy work?” using the 5 parts

14. 40 gallons
of gasoline
$30 Tucson Mall
Giftcard
4 NFL Season tickets to
the team of your choice
PS4
1 Case of Energy
Drinks
10 Anime Film Festival
tickets
2 tickets to Chivas
vs. America
$75 Barnes & Noble
Giftcard
$200 at skate shop

15. 1 year Kickboxing
Gym Membership
1 semester art
school tuition
Ipod nano
100 hours recording
studio time
6 tickets to U of A vs. ASU
football game
Small 2 acre Onion
Farm
$40 Amazon.com gift
card
$400 at tennis pro
shop
Honda ATV

16. New Bowling ball
with your name
engraved
1 semester art
school tuition
2 In And Out
Burgers each day
for 1 year
$75 Dairy Queen
giftcard
Internship with KROQ in
Los Angeles
$75 Dominos Pizza gift
card
$50 at Walmart
1 broken down truck
(needs new
transmission)
1 used 2002 era
laptop computer

17. 8 new
truck
tires
1 semester at
Scottsdale Culinary
Institute
2 In And Out
Burgers each day
for 1 year
100 itunes
downloads
1 Fender electric guitar
2 dairy cows
$100 at Bare
Escentuals
$50 at Walmart
2 tickets to Chivas
vs. America

18. 2 tickets anywhere
Southwest Flies
1 semester art
school tuition
1 Case of Energy
Drinks
Honda Dirtbike
Internship with LA
Times
$200 at skate shop
4 Red Sox vs. Devil
Rays tickets
$50 Starbucks
giftcard