WVHVAVTV IVSV EVCVOVNVOVMVIVCVSV? 1
V CV hV aV pV tV eV r
1 WHATVISV
ECONOMICS?
SVoVlVuVtViVoVnVMVaVnVuVaVlV EVcVoVnVoVmViVcVsV 13 Vt h V GVlVoV
bVaVlVEVdViVtViVoVnV by V MViVcVhVaVeVlV PVaVrVkViVnV AVlVlV CV
hVaVpVtVeVrVsVsVoVlVuVtViVoVnVs
1. ListVsomeVexamplesVofVtheVscarcityVthatVyouVface.
ExamplesVofVscarcityVcommonVtoVstudentsVincludeVnotVenoughVincomeVtoVaffordVbothV
tuitionVandVaVniceVcar,VnotVenoughVlearningVcapacityVtoVstudyVforVbothVanVeconomics
VexamVandVaVchemistryVexamVinVoneVnight,VandVnotVenoughVtimeVtoVallowVextensiveV
studyingVandVextensiveVsocializing.
2. FindVexamplesVofVscarcityVinVtoday’sVheadlines.
AVheadlineVinVTheVBaltimoreVSunVonVJuneV20,V2017VwasV“DavisVSaysVSpecialVDeploy
mentVHelpedVStallVViolence.”VTheVstoryVpresentedVPoliceVCommissionerVKevinVDavisV
statingVthatVaVweek-
longVdeploymentVofVuniformedVpoliceVofficersVonVtheVstreetsVofVBaltimoreVhelpedVredu
ceVshootingsVinVtheVcity.VButVtheVstoryVpointedVoutVtheVroleVofVscarcityVwhenVCommi
ssionerVDavisVsaidVthatV“theVdeploymentVwasVnotVsustainableVoverVtheVlongVterm”Vdue
VtoVitsVcost.
3. FindVanVexampleVofVtheVdistinctionVbetweenVmicroeconomicsVandVmacroeconomicsVinVtoday’s
headlines.
,1
, WVHVAVTV IVSV EVCVOVNVOV 2V
MVIVCVSV?
Microeconomics:VOnVJuneV20,V2017VaVheadlineVinVEastVBayVTimesVwasV“RealityVvsVF
antasy:VFTCVtoVBlockVFanDuel-
DraftKingsVMerger.”VThisVstoryVcoversVaVmicroeconomicVtopicVbecauseVitVdiscussesVh
owVtwoVon-
lineVfantasyVsportsVsites,VwhichVwereVtryingVtoVmerge,VnowVfacedVoppositionVbyVtheVF
ederalVTradeVCommissionV(FTC)VwhichVannouncedVitVwouldVchallengeVtheVmerger.VM
acroeconomics:VOnVJuneV20,V2017,VaVheadlineVinVTheVWallVStreetVJournalVwasV“Ryan
VTalksVUpVLikelihoodVofVTaxVOverhaul.”VThisVstoryVcoversVaVmacroeconomicVtopicVb
ecauseVitVconcernsVtaxesVthatVaffectVeveryVbusinessVandVindividualVinVtheVentireVecono
PageV43
my.
1. DescribeVtheVbroadVfactsVaboutVwhat,Vhow,VandVforVwhomVgoodsVandVservicesVareVprodu
ced.V WhatVgetsVproducedVisVsignificantlyVdifferentVtodayVthanVinVtheVpast.VTodayVthe
VU.S.VeconomyVproducesVmoreVservices,VsuchVasVmedicalVoperations,Vteaching,VandVha
irVstyling,VthanVgoods,VsuchVasVpizza,Vautomobiles,VandVcomputers.VHowVgoodsVandVs
ervicesVareVproducedVisVbyVbusinessesVdeterminingVhowVtheVfactorsVofVproduction,Vlan
d,Vlabor,VcapitalVandVentrepreneurship,VareVcombinedVtoVmakeVtheVgoodsVandVservices
VweVconsume.VLandVincludesVallVnaturalVresources,VbothVrenewableVnaturalVresourcesV
suchVasVwood,VandVnonrenewableVnaturalVresourcesVsuchVasVnaturalVgas.VLabor’sVqual
ityVdependsVonVpeople’sVhumanVcapital.VInVtheVU.S.Veconomy,VhumanVcapitalVobtaine
dVthroughVschoolingVhasVincreasedVoverVtheVyears
withVfarVmoreVpeopleVcompletingVhighVschoolVandVattendingVcollegeVthanVinVpastVyears
.VFinally,VforVwhomVareVgoodsVandVservicesVtoVbeVproducedVdependsVonVtheVwayVinco
meVisVdistributedVto
U.S.Vcitizens.VThisVdistributionVisVnotVequal;VtheV20VpercentVofVpeopleVwithVtheVlowes
tVincomeVearnVaboutV5VpercentVofVtheVnation’sVtotalVincomeVwhileVtheV20VpercentVof
VpeopleVwithVtheVhighestVincomesVearnVaboutV50VpercentVofVtotalVincome.VOnVtheVav
erage,VmenVearnVmoreVthanVwomen,VwhitesVmoreVthanVnon-
whites,VandVcollegeVgraduatesVmoreVthanVhighVschoolVgraduates.
2. UseVheadlinesVfromVtheVrecentVnewsVtoVillustrateVtheVpotentialVforVconflictVbetweenVsel
f-interestVandVtheVsocialVinterest.
OneVexampleVofVanVissueVconcernsVtheVuseVofVaVschoolVboard’sVcreditVcardVtoVmakeV
personalVpurchases.VAVJuneV20,V2017VheadlineVfromVStarVTribuneVwasV“ShakopeeVBoa
rdVApprovesVSuperintendent’sVResignationVWillVPayVHimV$50,000.”VThisVstoryVdiscuss
esVtheVsuperintendent’sVuseVofVaVschoolVboardVcreditVcardVtoVbuyVitemsVsuchVasVaVtel
evisionVandVtripVto
, WVHVAVTV IVSV EVCVOVNVOV 3V
MVIVCVSV?
Nashville.VTheVsuperintendentVwasVfollowingVhisVself-
interestVbecauseVheVmayVnotVhaveVrepaidVtheVpurchasesVhadVtheyVnotVbeenVuncovered.
VTheVschoolVboardVchairVsaidV“InVlightVofVtheVcurrentVissuesVfacingVtheVschoolVdistrict
,VtheVschoolVboardVfeelV(sic)VthatVaVchangeVinVleadershipVisVwarranted.”VTheVchairVbeli
evesVthatVtheVsocialVinterestVisVservedVbyVhavingVaVnewVsuperintendentVwithoutVtheViss
ueVofVmisuseVofVaVcreditVcardVhangingVoverVhisVorVherVhead.
PageV46
1. ExplainVtheVideaVofVaVtradeoffVandVthinkVofVthreeVtradeoffsVthatVyouVhaveVmadeVtoday.
AVtradeoffVreflectsVtheVpointVthatVwhenVsomeoneVgetsVoneVthing,VsomethingVelseVmust
VbeVgivenVup.VWhatVisVgivenVupVisVtheVopportunityVcostVofVwhateverVisVobtained.VThr
eeVexamplesVofVtradeoffsVthatVareVcommonVtoVstudentsVinclude:Va)VWhenVaVstudentVsl
eepsVinVratherVthanVgoingVtoVhisVorVherVearlyVmorningVeconomicsVclass,VtheVstudentVt
radesVoffVadditionalVsleepVforVstudyVtime.VTheVopportunityVcostVofVtheVdecisionVisVaVl
owerVgradeVonVtheVexam.Vb)VWhenVaVstudentVrunningVlateVforVclassVparksVhisVorVher
VcarVillegally,VtheVstudentVtradesVoffVsavingVtimeVforVtheVriskVofVaVticket.VTheVpotenti
alVopportunityVcostVofVtheVdecisionVisVtheVgoodsVandVservicesVthatVcannotVbeVpurchase
dVifVtheVstudentVreceivesVanVexpensiveVparkingVticket.Vc)VAVstudentVtradesVoffVhigherV
incomeVbyVspendingVtimeVduringVtheVdayVworkingVatVaVpart-
timeVjobVforVlessVtimeVspentVatVleisureVtimeVandVstudy.VTheVopportunityVcostVforVtheV
higherVincomeVisVlessVleisureVandVlowerVgradesVinVclasses.
2. ExplainVwhatVeconomistsVmeanVbyVrationalVchoiceVandVthinkVofVthreeVchoicesVthatVyou’veVmade
todayVthatVareVrational.
AVrationalVchoiceVisVoneVthatVcomparesVtheVcostsVandVbenefitsVofVtheVdifferentVactions
VandVthenVchoosesVtheVactionVthatVhasVtheVgreatestVbenefitVoverVcostVforVtheVpersonV
makingVtheVchoice.
ThreeVrationalVchoicesVmadeVbyVstudentsVinclude:Va)VTheVchoiceVtoVskipVbreakfastVtoV
goVtoVclass.VInVthisVcaseVtheVbenefitVisVtheVhigherVgradeVinVtheVclassVandVtheVcostVisV
theVbreakfastVforgone.Vb)VTheVchoiceVtoVstopVtalkingVwithVaVfriendVonVtheVphoneVand
VstartVstudyingVforVanVimpendingVexam.VInVthisVcaseVtheVbenefitVisVtheVresultingVhighe
rVgradeVinVtheVclassVandVtheVcostVisVtheVconversationVforgone.Vc)VTheVchoiceVtoVdoVla
undryVtodayVratherVthanVwatchVtelevision.VInVthisVcaseVtheVbenefitVisVtheVfactVtheVstud
entVwillVhaveVcleanVclothesVtoVwearVandVtheVcostVisVtheVlossVofVtheVentertainmentVthe
VtelevisionVshowVwouldVhaveVprovided.
3. ExplainVwhyVopportunityVcostVisVtheVbestVforgoneValternativeVandVprovideVexamplesV
ofVsomeVopportunityVcostsVthatVyouVhaveVfacedVtoday.
V CV hV aV pV tV eV r
1 WHATVISV
ECONOMICS?
SVoVlVuVtViVoVnVMVaVnVuVaVlV EVcVoVnVoVmViVcVsV 13 Vt h V GVlVoV
bVaVlVEVdViVtViVoVnV by V MViVcVhVaVeVlV PVaVrVkViVnV AVlVlV CV
hVaVpVtVeVrVsVsVoVlVuVtViVoVnVs
1. ListVsomeVexamplesVofVtheVscarcityVthatVyouVface.
ExamplesVofVscarcityVcommonVtoVstudentsVincludeVnotVenoughVincomeVtoVaffordVbothV
tuitionVandVaVniceVcar,VnotVenoughVlearningVcapacityVtoVstudyVforVbothVanVeconomics
VexamVandVaVchemistryVexamVinVoneVnight,VandVnotVenoughVtimeVtoVallowVextensiveV
studyingVandVextensiveVsocializing.
2. FindVexamplesVofVscarcityVinVtoday’sVheadlines.
AVheadlineVinVTheVBaltimoreVSunVonVJuneV20,V2017VwasV“DavisVSaysVSpecialVDeploy
mentVHelpedVStallVViolence.”VTheVstoryVpresentedVPoliceVCommissionerVKevinVDavisV
statingVthatVaVweek-
longVdeploymentVofVuniformedVpoliceVofficersVonVtheVstreetsVofVBaltimoreVhelpedVredu
ceVshootingsVinVtheVcity.VButVtheVstoryVpointedVoutVtheVroleVofVscarcityVwhenVCommi
ssionerVDavisVsaidVthatV“theVdeploymentVwasVnotVsustainableVoverVtheVlongVterm”Vdue
VtoVitsVcost.
3. FindVanVexampleVofVtheVdistinctionVbetweenVmicroeconomicsVandVmacroeconomicsVinVtoday’s
headlines.
,1
, WVHVAVTV IVSV EVCVOVNVOV 2V
MVIVCVSV?
Microeconomics:VOnVJuneV20,V2017VaVheadlineVinVEastVBayVTimesVwasV“RealityVvsVF
antasy:VFTCVtoVBlockVFanDuel-
DraftKingsVMerger.”VThisVstoryVcoversVaVmicroeconomicVtopicVbecauseVitVdiscussesVh
owVtwoVon-
lineVfantasyVsportsVsites,VwhichVwereVtryingVtoVmerge,VnowVfacedVoppositionVbyVtheVF
ederalVTradeVCommissionV(FTC)VwhichVannouncedVitVwouldVchallengeVtheVmerger.VM
acroeconomics:VOnVJuneV20,V2017,VaVheadlineVinVTheVWallVStreetVJournalVwasV“Ryan
VTalksVUpVLikelihoodVofVTaxVOverhaul.”VThisVstoryVcoversVaVmacroeconomicVtopicVb
ecauseVitVconcernsVtaxesVthatVaffectVeveryVbusinessVandVindividualVinVtheVentireVecono
PageV43
my.
1. DescribeVtheVbroadVfactsVaboutVwhat,Vhow,VandVforVwhomVgoodsVandVservicesVareVprodu
ced.V WhatVgetsVproducedVisVsignificantlyVdifferentVtodayVthanVinVtheVpast.VTodayVthe
VU.S.VeconomyVproducesVmoreVservices,VsuchVasVmedicalVoperations,Vteaching,VandVha
irVstyling,VthanVgoods,VsuchVasVpizza,Vautomobiles,VandVcomputers.VHowVgoodsVandVs
ervicesVareVproducedVisVbyVbusinessesVdeterminingVhowVtheVfactorsVofVproduction,Vlan
d,Vlabor,VcapitalVandVentrepreneurship,VareVcombinedVtoVmakeVtheVgoodsVandVservices
VweVconsume.VLandVincludesVallVnaturalVresources,VbothVrenewableVnaturalVresourcesV
suchVasVwood,VandVnonrenewableVnaturalVresourcesVsuchVasVnaturalVgas.VLabor’sVqual
ityVdependsVonVpeople’sVhumanVcapital.VInVtheVU.S.Veconomy,VhumanVcapitalVobtaine
dVthroughVschoolingVhasVincreasedVoverVtheVyears
withVfarVmoreVpeopleVcompletingVhighVschoolVandVattendingVcollegeVthanVinVpastVyears
.VFinally,VforVwhomVareVgoodsVandVservicesVtoVbeVproducedVdependsVonVtheVwayVinco
meVisVdistributedVto
U.S.Vcitizens.VThisVdistributionVisVnotVequal;VtheV20VpercentVofVpeopleVwithVtheVlowes
tVincomeVearnVaboutV5VpercentVofVtheVnation’sVtotalVincomeVwhileVtheV20VpercentVof
VpeopleVwithVtheVhighestVincomesVearnVaboutV50VpercentVofVtotalVincome.VOnVtheVav
erage,VmenVearnVmoreVthanVwomen,VwhitesVmoreVthanVnon-
whites,VandVcollegeVgraduatesVmoreVthanVhighVschoolVgraduates.
2. UseVheadlinesVfromVtheVrecentVnewsVtoVillustrateVtheVpotentialVforVconflictVbetweenVsel
f-interestVandVtheVsocialVinterest.
OneVexampleVofVanVissueVconcernsVtheVuseVofVaVschoolVboard’sVcreditVcardVtoVmakeV
personalVpurchases.VAVJuneV20,V2017VheadlineVfromVStarVTribuneVwasV“ShakopeeVBoa
rdVApprovesVSuperintendent’sVResignationVWillVPayVHimV$50,000.”VThisVstoryVdiscuss
esVtheVsuperintendent’sVuseVofVaVschoolVboardVcreditVcardVtoVbuyVitemsVsuchVasVaVtel
evisionVandVtripVto
, WVHVAVTV IVSV EVCVOVNVOV 3V
MVIVCVSV?
Nashville.VTheVsuperintendentVwasVfollowingVhisVself-
interestVbecauseVheVmayVnotVhaveVrepaidVtheVpurchasesVhadVtheyVnotVbeenVuncovered.
VTheVschoolVboardVchairVsaidV“InVlightVofVtheVcurrentVissuesVfacingVtheVschoolVdistrict
,VtheVschoolVboardVfeelV(sic)VthatVaVchangeVinVleadershipVisVwarranted.”VTheVchairVbeli
evesVthatVtheVsocialVinterestVisVservedVbyVhavingVaVnewVsuperintendentVwithoutVtheViss
ueVofVmisuseVofVaVcreditVcardVhangingVoverVhisVorVherVhead.
PageV46
1. ExplainVtheVideaVofVaVtradeoffVandVthinkVofVthreeVtradeoffsVthatVyouVhaveVmadeVtoday.
AVtradeoffVreflectsVtheVpointVthatVwhenVsomeoneVgetsVoneVthing,VsomethingVelseVmust
VbeVgivenVup.VWhatVisVgivenVupVisVtheVopportunityVcostVofVwhateverVisVobtained.VThr
eeVexamplesVofVtradeoffsVthatVareVcommonVtoVstudentsVinclude:Va)VWhenVaVstudentVsl
eepsVinVratherVthanVgoingVtoVhisVorVherVearlyVmorningVeconomicsVclass,VtheVstudentVt
radesVoffVadditionalVsleepVforVstudyVtime.VTheVopportunityVcostVofVtheVdecisionVisVaVl
owerVgradeVonVtheVexam.Vb)VWhenVaVstudentVrunningVlateVforVclassVparksVhisVorVher
VcarVillegally,VtheVstudentVtradesVoffVsavingVtimeVforVtheVriskVofVaVticket.VTheVpotenti
alVopportunityVcostVofVtheVdecisionVisVtheVgoodsVandVservicesVthatVcannotVbeVpurchase
dVifVtheVstudentVreceivesVanVexpensiveVparkingVticket.Vc)VAVstudentVtradesVoffVhigherV
incomeVbyVspendingVtimeVduringVtheVdayVworkingVatVaVpart-
timeVjobVforVlessVtimeVspentVatVleisureVtimeVandVstudy.VTheVopportunityVcostVforVtheV
higherVincomeVisVlessVleisureVandVlowerVgradesVinVclasses.
2. ExplainVwhatVeconomistsVmeanVbyVrationalVchoiceVandVthinkVofVthreeVchoicesVthatVyou’veVmade
todayVthatVareVrational.
AVrationalVchoiceVisVoneVthatVcomparesVtheVcostsVandVbenefitsVofVtheVdifferentVactions
VandVthenVchoosesVtheVactionVthatVhasVtheVgreatestVbenefitVoverVcostVforVtheVpersonV
makingVtheVchoice.
ThreeVrationalVchoicesVmadeVbyVstudentsVinclude:Va)VTheVchoiceVtoVskipVbreakfastVtoV
goVtoVclass.VInVthisVcaseVtheVbenefitVisVtheVhigherVgradeVinVtheVclassVandVtheVcostVisV
theVbreakfastVforgone.Vb)VTheVchoiceVtoVstopVtalkingVwithVaVfriendVonVtheVphoneVand
VstartVstudyingVforVanVimpendingVexam.VInVthisVcaseVtheVbenefitVisVtheVresultingVhighe
rVgradeVinVtheVclassVandVtheVcostVisVtheVconversationVforgone.Vc)VTheVchoiceVtoVdoVla
undryVtodayVratherVthanVwatchVtelevision.VInVthisVcaseVtheVbenefitVisVtheVfactVtheVstud
entVwillVhaveVcleanVclothesVtoVwearVandVtheVcostVisVtheVlossVofVtheVentertainmentVthe
VtelevisionVshowVwouldVhaveVprovided.
3. ExplainVwhyVopportunityVcostVisVtheVbestVforgoneValternativeVandVprovideVexamplesV
ofVsomeVopportunityVcostsVthatVyouVhaveVfacedVtoday.
