Download Economic Decision Making

Lesson 2
CONCEPTS
TEKS
Choices
(4) Economics. The student understands the
basic principles of the U.S. free enterprise
system.
Economizing behavior
(11) Economics. The student understands the
basic concepts of consumer economics
Opportunity costs
(5) Economics. The student understands the
concepts of scarcity and opportunity costs.
Scarcity
(5) Economics. The student understands the
concepts of scarcity and opportunity costs.
Economic Systems
(10) Economics. The student understands
traditional, command, and market economic
systems
B) compare the U.S. free enterprise system with
other economic systems
 How
would your students
define economics?
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the science of decision making …
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the study of choice…
‘Economics’ evaluates
 relative cost
 benefits of each alternative
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weighs the costs and benefits of
alternatives
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identifies the real or opportunity
costs of a decision
the best alternative not chosen
 the next best alternative
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What is the common misconception
regarding opportunity cost?
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A very useful 5 step tool to help students
reach personal and societal decisions.
The five steps are:
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P. What is the PROBLEM?
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A. What are the ALTERNATIVES?
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C. What are the CRITERIA important to the decision?
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E. EVALUATE each alternative.
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D. Make a DECISION
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…an analysis of costs and benefits to make
rational choices
Two basic economic premises:
1. People economize
2. People respond to incentives in predictable ways
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Making good choices helps us use
limited resources wisely.
Most choices involve trade-offs…a
little more or a little less of
something.
Different methods can be used
to allocate goods and services.
Which methods are best?
Which piece of the pie do we use
to allocate different kinds of goods
and services?
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Each type of economic system represents:
 A way of allocating resources
 A way of making decisions
answer the same basic economic
questions
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What…
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How …
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For whom…
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Traditional Economies make decisions by repeating decisions of
previous generations
Command Economies an authority figure makes the decisions
Market Economies –
individuals and businesses make the
decisions; price determines how goods and
services are allocated
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Travel
 www.travel.state.tx.us
 Regions Cities Videos Weather and more…
Two people
 6 days
 $1000 allowance
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Activity 2.1
Students use the Paced
Decision-Making Grid
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Where?
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When?
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Mode of transportation?
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Big Bend
Gulf Coast
Hill Country
Panhandle Plains
Piney Woods Region
Prairies & Lakes Region
South Texas Plains
Fall
 Winter
 Spring
 Summer
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 Mode
Car
 Air
 Bus
 Bike
 Other
 Walk
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of transportation?
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Trip Ideas
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Trip Ideas
Get a head start on your Texas vacation with helpful ideas to plan your
getaway.
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www.travel.state.tx.us
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How to Read this Report
VARIABLES
Demographics
CHARACTERISTICS
RECOMMENDED USE
Segmented by age, income and household
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Lifestages
in Household
Age of the Household Head
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Young & Free
18‐34 years
no
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Young Family
18‐34 years
yes
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Maturing & Free
35‐54 years
no
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Moderate Family
35‐54 years
Under $75K
yes
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Affluent Family
35‐54 years
$75K or higher
yes
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Moderate Mature
55 years or older
Under $60K
no
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Affluent Mature
55 years or older
$60K or higher
no
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travelers that can be used for all marketing and communication vehicles
A fundamental description of
Household Income
Children under Age 18
A discriminating segmentation of target audience for media targeting,CRM among others
Lifestage analysis combines three variables ‐age, household income, and presence of children in the household
‐into one variable containing seven mutually‐exclusive segments defined above. Because of the age component,
the lifestage segments are “moving targets” from year to year.
Generations
Traveler’s Year of Birth
A focused messaging approach that uses different mediums
(radio, TV, and Internet) to target a specific audience
Millennial
After 1981
Gen X
Boomers
Silent
GI
1965‐1980
1946‐1964
1930‐1945
1929 and earlier
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The following documents highlight the latest
tourism data available:
2008 Texas Travel Facts (.pdf 637KB)
2008 Top Leisure Destinations (.pdf 108KB)
2008 Top Attractions (.pdf 112KB)
1 Alamo 33.9%
11 Schlitterbahn 12.5%
2 Hill Country 23.3%
12 Fort Worth Stockyards 12.1%
3 Galveston Island 22.5%
13 Six Flags Fiesta Texas 11.5%
4 State Capitol 17.9%
14 Texas State Fair 11.0%
5 Six Flags Over Texas 17.3%
15 Cabela's 10.8%
6 San Marcos Outlet Malls 17.2%
16 Kemah Boardwalk 10.2%
7 Bass Pro Shops 15.3%
17 Space Center Houston 10.0%
(NASA's Johnson Space Center)
8 Sea World of Texas 14.7%
18 Texas Motor Speedway 10.0%
9 Paseo del Rio (River Walk) 14.1%
19 Fort Worth Zoo 9.8%
10 South Padre Island 13.0%
20 Dallas Museum of Art 9.6%