How many of you have seen this Lemonade commercial from Verizon?
Think of the commercial in terms of the 6 Core Economic Principles.
- 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?
- 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…
- People respond to incentives. Did incentives change in the commercial? How did people respond?
- 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?
- Voluntary trade creates wealth. What were the different types of specializations of goods and services that helped Suzy’s lemonade empire?
- The consequences of choices lie in the future. What were the consequences for Suzy’s dad? What were other unexpected consequences–good and bad?