Fundamentals of Econ with Ms.H

What would you rather be doing today?

• Sleeping

• Be at school

Situation - I have 2hrs of "free time" - I can complete my homework due tomorrow morning OR I can mindlessly scroll through my Instagram feed. I am choosing to scroll through my Instagram feed. What is the cost, and what is the benefit of this choice if my GOAL is to improve my grade?

• Cost: nothing because my teacher accepts late work Benefit: I get to do what I love

• Cost: Nothing because I don't like school anyway Benefit: I get to do what I love

• Cost: Homework doesn't get done, my work increases and my grade drops

  Benefit: I get a brain break that I may have needed

Because resources (such as food, water, and produce) are limited and sometimes cannot meet all the wants and needs of individuals and societies, choices must be made about how to allocate them - What are real examples of scarcity in the US?

• Not enough land to grow food

• Not enough fresh water to drink

• Not enough jobs to make money

Scenario - I want to go watch the new Deadpool Movie, but the only time I can go is when I am supposed to spend quality time with my daughter. I chose to get a babysitter and go watch the movie. What was my opportunity cost?

• Watching the movie

• paying the babysitter

• spending time with my daughter

What do you learn in Economics?

• How people make money

• How governments make money

• How to make choices

• How to make choices about money

Click all the examples of incentives

• chocolate

• gift cards

• extra credit

• advice

Situation: My phone no longer has enough room for me to download a new app. I need this new app for school. What can I do to increase the marginal utility of my phone without deleting my apps? (select all possible correct answers)

• buy more data

• get a new phone

• delete another app

Situation: I hired someone to help me grade papers twice a week. I already paid them in advance for two weeks. They haven't shown up. In order to get value from this sunk cost I must:

• keep paying them and hope they show up

• Fire the person, and consider the two week investment a loss