Economics – 2/07/13

I.  Bellwork:

A professional baseball team has only enough money to sign either one superstar or three young players. The superstar could help the team win the championship this year but would not be with the team long. The young players are talented but not yet ready for the major leagues.

Questions & Answers

1.  What is the trade off associated with signing the young players?
2.  Explain the opportunity cost associated with signing the young players?

II.  Objective:

• Demonstrate how scarcity and opportunity costs are present in economic decisions by constructing a production possibilities frontier graph.
• Determine the meaning of words and phrases as they are used in a text

III. Turn in Homework

IV.    Discussion Section 1-3 pages 19-23

A.  Identifying Trade offs and Opportunity Costs Pgs 19-20

1.  Example:  How to spend Friday night?
2.  Short Video On Opportunity Costs/Trade Offs
3.  Difference between trade offs and opportunity cost

            B.  Production Possibilities Frontier Pgs 21-23

1.  Example:  Rectangles & Triangles -Production Possibility Frontier
2. Production Possibility Frontier Video 1
3. Production Possibility Frontier  Video Part 2
4. Production-possibilities Curve, I

V. Test on Monday

Economics W2013