Also known as the opening narration.
Typically establishes the main characters, relationships, and the world they live in.
Later in this act the inciting incident, catalyst, occurs.
Attempts to deal with this incident lead to a second (more dramatic) situation which is the first plot point.
The first plot point: 1. Signals the end of the first 2. Ensures life will never be the same again 3. Raises the Dynamic Question that will be answered in the climax.
this then transitions to the Second Act