Vocab
Define Scarcity
Define a Trade-off
When you give something up in order to gain something else
Which system encourages individuals/businesses to own the means of production?
Capitalism
What was one incentive (motivational factor) during the classroom auction game we played.
Groups could only purchase 3 Items each.
If all groups bid 0, everyone else got 100 more dollars.
The values of the rest of your group members (did the things they wanted to purchase line up with what you wanted to purchase)
Give an example of a trade-off students make every day
Coming to school = Trading time & effort.
What is an incentive?
Something that motivates a person to do something
Explain the difference between a want and a need.
Need- Something we cannot function without .
Want- Something we don't necessarily need, but typically provides us with some form of joy.
Karl Marx is known as the founder of which economic system?
Communism
Think back to the Laptop Bellwork question: In a communist school environment, how would the laptops be distributed?
They would open up a computer lab and allow any students to use them whenever they needed to. However, the students wouldn't be able to take the laptops home.
If a company raises their employee's salaries in order to attract more people to work for them, what is this an example of?
Positive incentive
Give 1 example of a positive incentive and a negative incentive.
Money, Praise, Promotion, etc.
Fine, Jail, failing a test, etc.
Define cost:
Something you must give up after making a decision (money, time, effort, etc)
In the pizza shop examples, which economic system benefits the workers the most? Which economic system benefits the Owner the most?
1: Socialism
2: Capitalism
Which economic system allows for the most individual freedom in decision making?
Capitalism
If a government spends 10 billion dollars on new military equipment, what is the opportunity cost?
The money they could've used to build roads, schools, hospitals, etc.
What is opportunity cost?
The next best alternative you gave up when making a choice.
What is the difference between a trade-off and cost opportunity.
Trade-off: Can me multiple things
Opportunity Cost: The single most valuable thing you didn't choose
Who owns the factors of production in all 3 economic systems?
1: Capitalism- Individuals/businesses (owners)
2: Socialism- Mix between workers and Government
3: Communism- Government has total control
Explain how scarcity, opportunity cost, and trade-offs are all related.
Since humans don't have unlimited time, energy, or money, everytime we make a decision there are trade-offs and opportunity costs.
Imagine you live in a country with free healthcare but higher taxes-- which system is this most likely to be?
Socialism
What are Factors of Production?
Everything that goes into making a product/running a business.
What is Maslow's hierarchy of needs.
A theory in psychology that claims humans need their basic functions met before moving on to other (more fulfilling) aspects of their life.
Give me 2 examples of "socialist" programs that are implemented in the US
Firefighters, public schools, public libraries, police department, social security, etc.
Why do capitalist countries encourage competition? How can this benefit the consumers?
Let's say you have two gas stations right across the street from one another. If the gas station on the left has gas for 2.50 and the gas station on the right sells gas for 3.50, the one on the right might go out of business pretty quickly. Competition would force the gas station on the right to lower their prices in order to stay in business.
What is the opportunity cost for going to college?
The money you could've been making if you worked instead.