Bell Ringer: Number Bell Ringer section #1 thru #21. For each item, write one of the above (could be more than one answer)

1)Medicalcheckup

2)Taxi ride

3)Factory

5)Automobile

6)Highway

7)Candy bar

8)JayZ

9)Coal

10)Ice cream cone

11)Socks

12)Coke

13)Haircut

14)Iron ore

15)Waiter

16)Steve Jobs

17)Ted Turner

18)Forest

19)Crude oil

20)Lumber

21)gasoline

August 20, 2015Good/Service/Land/Labor/Capital/Entrepreneur??

Chapter 1 – part 2

Main Idea: Economic decisions always involve trade-offs that have costs

• Trade-off: sacrificing one good or service to purchase or produce another• Example: if you choose to buy an iPod, you are exchanging

your income for the right to own the iPod.

The Cost of Trade-Offs• Opportunity Cost: the value of the next best alternative

given up for the alternative that was chosen

View: What’s the Difference Between a Trade-Off and an Opportunity Cost?

Figure 2

• Opportunity Cost video clip• Finish notes• 4 Factors of Production handout