Post Lesson 2/Pre Lesson 3

The class today was Good. I gave it a Check. We still need more discussion that comes FROM you all first and I must do a better job of allowing for that. Here are some major notes:

-We didn't mention it explicitly but our definition for the year is: Economics is the allocation of scarce resources which have alternative uses.

-The question is then how do we allocate which is what we talked about today, the role of prices

• Prices allocate by helping us to realize the value of an object...and we value those things RELATIVE to their other uses.
• Prices are not just an obstacle to our desires...they are information about how we ought to allocate our scarce resources (ie. time and money)
• Prices enable us to have lots of knowledge (the kind we need) we wouldn't otherwise have without forcing us to know everything.
• Prices allow for things to flow to their most efficient uses
• BUT...prices also have a cost and it doesn't always make sense to use them.

Prices are also subject to our economic principles....we'll see this next lesson and also in supply and demand.

Your prompt for your next journal is: Are prices usually higher or lower in low-income neighborhoods? Why? Think about how much it costs an individual to cash a paycheck.

Finally, your first initial reflection paper is coming up. Choose one of these questions to think about and please discuss with classmates:

Respond to this statement: Decreasing the price of gas will be good for me. It will lower my costs of living. Explain your answer with LOGICAL steps and economic reasoning. (i.e. A occurs which will cause B which causes (or may cause) C and D etc) Are there any exceptions?

OR

Teachers acts in ways that cadets often find baffling. Although most teachers are truly interested in your learning and in making your experience worthwhile they often do things which accomplish just the opposite, why? How would you solve this problem?

SEE YOU THURSDAY!