Bellringer on full sheet today1. Why did you choose to come to school today?

2. If you weren’t here right now what would you be doing?

Opportunity Cost• Next best option

• Example: What you gave up to be here

• “I don’t get paid to be here”.

What is economics?

• Study of how people make choices

• You made a choice by coming to class today

• But that choice also has a cost

Economics

• People face trade-offs

• Hundreds of choices each day

• Every choice means you refuse something else

• Examples?

Economists• Study how

people make choices

• Influential but not always famous

• Only 1 US president with econ degree

Alan Greenspan

Ben Stein

Choice this morning

• Get up when alarm goes off

OR

Hit the snooze

Choice #1Get up when alarm goes off

Choice #2Snooze for 10 more minutes

Atleast 2 benefits

Check the one you did today

Benefits refused

#3

Choosing is refusing

• Your next best option:

• Opportunity cost

• All choices involve cost

4. Household example

5. Government example

6. Other example

Tell your tableDescribe a time you received something for

“free”

(What was it, where was it, when was it, etc)

There Is No Such Thing as A Free Lunch• Opportunity Cost

• There is no such thing as a free lunch (or breakfast)

• TNSTAFL

There Is No Such Thing as A Free Lunch

There Is No Such Thing as A Free Lunch

• Opportunity Cost

There Is No Such Thing as A Free Lunch

There Is No Such Thing as A Free Lunch

There Is No Such Thing as A Free Lunch

Example?

One paper per groupWhat if stuff was “free”?

Create a cost/benefit analysis for each societal choice

1. College doesn’t cost $$

2. Dr. visits don’t cost $$

3. Drive on highways cost $$

4. All radio paid, like Pandora or XM

5. Music & movie downloads now legal

6. Make up one of your own

Benefits Costs

At least 2 At least 2

On your paper:What if stuff was “free”?

Create a cost/benefit analysis for each societal choice

1. “Free” college

2. “Free” doctor visits

3. No free roads “toll roads”

4. No free radio, like Pandora or XM

5. All movie & music downloads “free” and legal

6. Make up one of your own

Benefits Costs

At least 2 At least 2