Presentation on theme: "Economics. What is Economics? Economics is the study of the production, distribution, and use of goods and services. There are 3 basic questions that."— Presentation transcript:
What is Economics? Economics is the study of the production, distribution, and use of goods and services. There are 3 basic questions that economics answer: 1- What to produce? 2- How to produce? 3- For whom to produce?
Supply and Demand ◦ Price of a good rises or falls depending on how many people want it or amount available ◦ Brainpop- Supply & Demand Brainpop
What are the different types of economic systems? 1. Traditional- Based on customs and traditions Use hunting and agriculture Community relies on itself for all needs 2. Command- Government owns ALL industry (Communism, Socialism) Government provides all goods and services the people need Government determines what is produced, price and wages
Economic Systems (cont.) 3. Market- Businesses are privately owned (Capitalism) Workers produce goods and services Workers paid from profits as determined by owners 4. Mixed- Blend of other 3 systems **ALL COUNTRIES HAVE A MIXED ECONOMY!!**
Economic Systems Pure Market Pure Command Russia Germany United Kingdom Cuba Brazil Canada Australia United States
What influences economic growth? Natural Resources- supplied by nature Human Resources- employees Capital Resources- equipment Technology Trade Entrepreneur- person who takes a risk and gains possible reward of operating a new business
Trade Import- bring products in from another country Export- send products out to another country Specialization- each country specializes in certain products or services How does specialization encourage trade?
Trade Barriers- used to limit trade to protect businesses from foreign competition Tariff- tax on imports Quota- limits the number of imports from certain countries Embargo- ban on trade with certain countries
Trade Agreements- increase trade and increase wealth NAFTA (North American Free Trade Agreement)- U.S., Canada, and Mexico join in free trade between each other with no tariffs or other trade barriers
Gross Domestic Product (GDP) The total value of goods and services produced in a country during a given time period Way to compare the economies of different countries CountryU.S. Dollars United States$36,200 China$3,600 India$2,200 Saudi Arabia$10,500 France$24,400 Zimbabwe$2,500 Estimated 2000 Per Person GDP
Personal Money Management Income- money that comes from getting paid Credit- borrowed money (ex. Credit cards, loans) Investing- spending money in hopes of earning more money than is spent (ex. stocks, collecting baseball cards)