Unit 2 Chapter 8 6th grade

Understanding Economic Choices

●Economic choices are decisions we make about how to use resources

●Personal economic choices affect individuals and others

●Examples of personal economic choices:

●What to buy

●Where to live

●Whether to attend college or trade school

●Which jobs to apply for

●Choices are based on personal values and priorities

●Different choices lead to different present and future consequences

Comparing Economic Choices: Car Purchase
Example
Standard Fuel Model (SFM):

●Cost: $25,000

●Fuel efficiency: 25 miles per gallon

●Meets standard emissions regulations

Fuel-Efficient Model (FEM):

●Cost: $30,000

●Fuel efficiency: 35 miles per gallon

●Low auto emissions

Consequences:

●FEM costs more upfront (present consequence)

●SFM costs more for gasoline over time (future consequence)

●FEM is better for the environment (future consequence)

●FEM may offer annual rebates (present and future consequence)

Collective Economic Choices

●Collective economic choices: decisions made by a society or group

●Examples:

●How to use available resources

●How to help businesses grow

●How to improve the economy

●Collective choices are influenced by:

●Shared cultural values

●Government decisions

●Citizen participation (voting, voicing opinions)

●Different societies may evaluate choices differently based on their priorities

●Example: Nepal and some Indian states forbid cow slaughter due to religious
values, despite food scarcity

Consequences of Collective Economic Choices

Case Study: Saudi Arabia's Oil Production

Decision: Increase oil production and boost exports

Present Consequences:

●Employment in oil industry increases

●High revenue from oil exports

Future Consequences:

●Depletion of oil reserves

●Need to find alternative resources for export

Recap Question: How do personal values and priorities influence both individual
and collective economic choices, and what are some potential consequences of
these choices?