Incentives
Is this an example of a positive of negative incentive?
You are pulled over and charged $100 for speeding.
Negative incentive
Good or service?
Eggs
Good
What are the three productive resources?
Human, capital and natural
What is the opportunity cost for the following situation?
Spending money on a toy instead of saving
not having that money available for something else later, like a trip or a bigger purchase
What is an economic trade off?
the giving up of one thing in return for something else
Is this an example of a positive of negative incentive?
King Soopers has a deal: buy three candy bars get two free.
Positive incentive
Good or service?
Babysitter
Service
Give an example of a human resource.
firefighter, miner, farmer, grocery store worker, barista, waiter, etc.
What is the opportunity cost for the following situation?
Eating a candy bar instead of dinner
Name three goods and two services you would need if you were getting a new dog
Goods
1. Dog bowl
2. Dog bed
3. Dog food
Service
1. Dog walking
2. Veterinarian
What is the definition of an incentive?
Something that makes you want to do something or act in a certain way
Give three examples of goods.
Answers will vary.
Fur traps are an example of which productive resource?
What is the opportunity cost for the following situation?
Staying up late instead of going to bed early
feeling tired and less focused the next day
What risk did the gold prospectors make when they came to Colorado?
Coming to the Rocky Mountains
Give an example of a positive incentive. Use a complete sentence.
If you do _______, you get ___________.
Give three examples of services
Answers will vary.
Give an example of a natural resource.
Water, wood, oil, honey, soil, gold
What is the opportunity cost for the following situation?
Choosing to play video games over homework
The time you could have spent doing homework, potentially leading to better grades or more free time later
Each person in your group needs to share an economic choice they have made in their lives. Use COMPLETE sentences.
answers will vary
Give an example of a negative incentive. Use a complete sentence.
If you ______, you have to ________
You go into an ice cream shop. Is this an example of a good? Service? Both? EXPLAIN your answer using a complete sentence.
Both!
Actual ice cream is a good but someone else makes and prepares it for you which is a service.
What is the definition of a capital resource?
the tools and things people make to help them create other things
What is the definition of opportunity cost?
what you give up when you choose one thing over another
If you were going to set up a lemonade stand, what are three economic concepts you would have to consider?
economic decision- how should we make the lemonade? how much of each ingredient do we need? where should we set it up? what should we do with the money afterwards? will I make enough money to pay for the ingredients?
economic risk- setting up the lemonade stand when it might rain, buying a lot of ice and not having a cooler to keep it cool
opportunity cost- should i set up a lemonade stand or do something else? if i set it up and i don't make any money, what did I give up?