Lemonomics

How many of you have seen this Lemonade commercial from Verizon?

Think of the commercial in terms of the 6 Core Economic Principles.

  1. People choose. We always want more than we can get and productive resources are scarce. How does Suzy get human, natural, and capital resources for her lemonade empire?
  2. All choices involve costs. An opportunity cost is the next best alternative you give up when you make a choice. Suzy makes the choice to go big with her lemonade stand. When she chose to go corporate, she refused something else…
  3. People respond to incentives. Did incentives change in the commercial? How did people respond?
  4. Economic systems influence individual choices and incentives. When her dad gave her the phone, he introduced a good that helped change the economic system from a roadside lemonade stand. What were the changes in the system as compared to a regular lemonade stand?
  5. Voluntary trade creates wealth. What were the different types of specializations  of goods and services that helped Suzy’s lemonade empire?
  6. The consequences of choices lie in the future. What were the consequences for Suzy’s dad? What were other unexpected consequences–good and bad?
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About Deborah Kozdras

Instructor and Chief Creative Officer at the Gus A. Stavros Center for Free Enterprise and Economic Education at the University of South Florida.
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