Presentation on theme: "Bead Game Simulation Traditional Market Command Total Team 1 Team 2"— Presentation transcript:
1Bead Game Simulation Traditional Market Command Total Team 1 Team 2
2Reflection Questions Which system had the most incentive to work? Why? Which system had the least incentive to work? Why?Which system was the most inefficient by modern standards? Explain.Which system would you like to live in, why?
3Standards Mastery Sheet Total CorrectTotal NumberMasteryPercentageSSEF1a1234537+-667SSEF1b910111213151639SSEF1c8212223SSEF1d171819202640SSEF2a242527282930313233343536SSEF2b71438
4Economic SystemEconomic System – method used by society to allocate/distribute the scarce resources, in order to provide for the wants and needs of the people
5Three Economic Questions What goods and services should be produced?How should these goods and services be produced?For Whom to produce them for?
6Four Economic SystemsTraditional economy – relies on habit, custom, or ritual to decided the 3 economic questionsMarket economy – economic decisions are made by buyers and sellers trading freely.Command Economies – in a centrally planned economy, the central government decides how to answer the three economic questions.Mixed Economies – most modern economies are mixed economies, market-based economic systems in which government plays a role in the market.
8Economic FreedomEconomic Freedom - freedom to make choices free of the governmentIndividual – where to work, study, consumeBusiness – what, where and how to produce
9Economic EfficiencyEconomic Efficiency - making the most of scarce resources, using your resources wisely and productivelyTechnological innovations allow society to be more productiveHumans to robots
10Economic SecurityEconomic Security - government will provide a safety net in times of economic downturnsSocial Security, welfare, unemployment checks, etc.
11Economic Predictability Economic Predictability - knowing that goods and services will be consistently availableGas, food, energy, etc.
12Economic EquityEconomic Equity - Fairness, being paid according to your skill level, not being discriminated againstLebron James is higher paid than a teacherA teacher is higher paid than a cashier at Wal-mart
13Economic GrowthEconomic Growth – improving the economy from year to year, improving standard of living as measured by GDP.Individual – better jobs, nicer homes, newer cars….better stuff!Business – produce more, increase customers, open new factories, etc.
14Economic InnovationEconomic innovation – improving upon existing technology in order to improve efficiency.Walkman to the iPhone, Record Player to Digital Media
15Additional Goals Additional Goals – future goals for a society Environmental protection, full employment, universal medical care, etc.
16Economic Goals and Societal Values Poster Project – pgs. 26-27 Poster Requirements:Title - Economic Goals and Societal ValuesSummary Statement – “The Economic Goals and Societal Values provide a basic framework for each society and their attempts to provide for their people.”Pictures of each goal represent each of the economic and social goals.1 if working alone2 if working with a partner3 if working with a group of 3Label, describe and summarize each pictureEconomic FreedomEconomic EfficiencyEconomic SecurityEconomic PredictabilityEconomic EquityEconomic GrowthEconomic InnovationAdditional GoalsEconomic EfficiencyPicture Summary: This picture represents assembly line production at an automobile manufacturing plant. This shows how the division of labor and specialization can increase efficiency.
17Economics Goals and Societal Values Poster Project pg. 23 - 27 Economic Goals and Societal ValuesSummary Statement:The Economic Goals and Societal Values provide a basic framework for each society andtheir attempts to provide fortheir people.Economic PredictabilityEconomic SecurityEconomic EfficiencyDefinition: picture represents an efficient use of resources through assembly line productionEconomic InnovationEconomic GrowthAdditional GoalsEconomic FreedomEconomic EquityPoster Requirements:Title - Economic Goals and Societal ValuesSummary Statement – Purpose of economic and Societal ValuesAt least 8 pictures to represent each of the Economic Goals and Social ValuesLabel, definition and picture description for each of the 8 Economic Goals and Societal Values
18Review Economic Goals Statements Economic Goal Last week I willingly enrolled in college courses at Coastal. I am so happy that I make my decisions about my future.My uncle lost his job, but thankfully he is able to receive unemployment checks.Wal-Mart recently upgraded all of their registers to touch screen monitors.General Motors replaced all of their human workers with robots in order to increase productivity.As a result of the internet and technology, our economy has experienced significant expansion over the past 30 years.I can always expect Publix to have the food I like!Hopefully in the future we will have full employment.With every degree/skill I earn, I improve my ability to make money.1. Economic Freedom2. Economic Security3. Economic Innovation (Efficiency)4. Economic Efficiency (Innovation)5. Economic Growth (Innovation)6. Economic Predictability7. Additional (Future) Goals (Equity)8. Economic Equity (Growth)
19ActivatorImagine that you are walking into Walmart. List 3 items that you could purchase and the departments that you would find them in.
20The Free MarketMarket – buyers and sellers meet to exchange goods and servicesMarket Economy – economic decisions are made by consumers and businesses based on buying and selling of goods and servicesAll resources are privately ownedAny income derived from selling resources goes exclusively to the ownerThe government has no role
21Role of the ConsumerConsumer Sovereignty - in a free market, consumers determine the goods that are produced; this makes them "sovereign" over production in an economy.“Ruler” of the market; expressed through a dollar vote for products when we make purchases. “The customer is always right”.When consumers buy products, their “dollar vote” signals to producers what to make and how much.
22SpecializationSpecialization – the separation of tasks within a system; people focus on a specific purpose/taskDivision of Labor – Workers perform fewer tasks in order to operate more efficiently
23SpecializationSpecialization – the separation of tasks within a system; people focus on a specific purpose/taskDivision of Labor – Workers perform fewer tasks in order to operate more efficiently
24Specialization Examples Glynn Academy – teachers in different departmentsEach teacher can master their contentPresent it in the most efficient manner possibleSocial StudiesScienceMathEnglish
25Specialization Examples RancherSlaughter HouseMeat CutterFinal Good (Output)Consumer GoodPublix Worker
26Specialization and Efficiency Productivity – average amount of output (good or service) per unit of input (labor, machine, etc.)Increased productivity means to do more with lessCapital investments allow increased efficiency
27Specialization and Efficiency Productivity – average amount of output (good or service) per unit of input (labor, machine, etc.)Increased productivity means to do more with lessCapital investments allow increased efficiency
28ProductivityMary looks over reports on four of her workers. Jack made 25 baskets in 5 hours. Walter made 36 baskets in 6 hours. Rudy made 40 baskets in 10 hours. Sam made 22 baskets in 4 hours. Jim made 50 baskets in 10 hours. Who has the greatest productivity?Jack 25/5 = 5 Baskets per hourWalter 36/6 = 6 Baskets per hourRudy 40/10 = 4 Baskets per hourSam 22/4 = 5.5 Baskets per hourJim 50/10 = 5 Baskets per hourWalter has the greatest productivity
29Productivity Creates Wealth 3rd World CountriesDeveloped Countries29
30Households and FirmsHousehold – Person or group of people living in a residenceConsumers - use the finished goods and services (outputs) to satisfy wants and needsFirm – business, organization that uses factors of production (inputs) to produce a product, which it then sellsSuppliers – transform “inputs” (F.O.P.) into “outputs” (products)
31Product MarketsProduct Markets – Households and firms interact; producers sell their goods and services to consumersHouseholds are buyers of goods and servicesFirms are sellers of goods and services (outputs)
32Factor MarketsFactor Markets – the markets where productive resources (F.O.P)/Inputs are bought and soldLabor - Firms (businesses) hire workers and pay them salariesLand - Purchased/rented landCapital - Use money from households (savings, investment, etc) to purchase capital goods
33Product Market Factor Market Market for F.O.P Circular Flow Model of Economic Activity – shows the flow of money and goods/services from and to businesses and householdsConsumer SpendingBusiness Income/RevenueProduct MarketMarket for Goods and ServicesFirms sell Households BuyConsumer Goods and ServicesFinal Goods and Services SoldHouseholdsBuy and ConsumeGoods and ServicesOwn and sell the F.O.PFirms (Business)Produce and sell Goods and ServicesHire and use F.O.P.Land, Labor, Capital - provided by householdInputs for Production (F.O.P.)Factor Market Market for F.O.PHouseholds sellFirms buyIncome to Households/IndividualsPayment for F.O.P. – Rent (Land) Wages (Labor), Interest (Capital), Profit (Entrepreneurs)
34Application Questions In the factor market, what do businesses provide households?The flow of goods and services in the product market is represented by which firm and products on the model below?When you apply for a job at the local Starbucks which market are you in?Which color arrows represent the flow of money; what color arrows represent the flow of inputs and outputs.Income/payment the F.O.PStarbucks/CoffeeFactorBlue/Tan
35Daily Assignment - Circular Flow Model of Economic Activity Consumer Spending 1. _________________________Business Income_________________________Product MarketGoods Purchased 1. ______________________________2. _______________________________Goods Offered 1. ___________________________2. ___________________________Household________________________Firm Firm 1. _____________________________Firm 2. _____________________________Input for Production1. ___________________________Factor of Production Offered 1. ___________________________Factor MarketWeekly Income 1. __________________Payments for F.O.P1. _________________
36Daily Assignment - Circular Flow Model of Economic Activity Consumer Spending 1. _________________________Business Income_________________________Product MarketGoods Purchased 1. ______________________________2. _______________________________Goods Offered 1. ___________________________2. ___________________________Household________________________Firm Firm 1. _____________________________Firm 2. _____________________________Input for Production1. ___________________________Factor of Production Offered 1. ___________________________Factor MarketWeekly Income 1. __________________Payments for F.O.P1. _________________
37Circular Flow Model of Economic Activity Consumer Spending 1. _________________________Business Income_________________________9.499.49Product MarketGoods Purchased 1. ______________________________Goods Offered 1. ___________________________2. ___________________________3.___________________________FajitasTacosBurritos FajitasHousehold________________________Firm Firm 1. _____________________________Firm 2. _____________________________ElisaMarcellaCilantrosBooks a MillionInput for Production_________________________________________________Factor of Production Offered 1. ___________________________StockersCoffee SellersCashiersLabor/SalespersonFactor MarketPayments for F.O.P________________Weekly Income 1. __________________2003000- Lease2200 – Electric400 - Water
40Economic FreedomDescription - Individuals’ right to choose your occupation and what to buy.Firms’ right to hire or produce.The right to conduct yourself with little government interference.Examples:1. I had the freedom to become a teacher and a coach; I can buy whatever I want.2. Firms range from automakers to fast food.
41Voluntary ExchangeWhen individuals willingly engage in a transaction where both parties benefit.Allows people to decide what and when they want to buy and sell, rather than forcing them to buy and sell at particular times or specific pricesExamples:When I get a haircut, I get a fresh look, Sportsclips gets my moneyWhen I buy gasoline, I get energy for my car, the firm gets my money
42Private Property Rights Description – Individuals and businesses have the right to buy and sell as much property as they wantProperty owners can prohibit others from using their propertyThe fifth amendment protects us from the federal or state governments taking our property for their own use.Examples:Households and firms are encouraged to own property and enjoy the protection of the propertyFirms can own and operate their business with limited interference from the government
43Profit MotiveThe force that encourages people and organizations to improve their material well-beingExamplesMany people in our society are driven by the desire to make money, which ultimately benefits the marketPeople in the U.S. are rewarded for innovations and efficiency via cash incentives
44CompetitionCompetition – efforts among sellers/producers to attract consumers at various pricesAt the heart of market economic philosophyExamples:Mcdonalds vs. Burger KingWalmart vs. Target
45Circular Flow Model of a Mixed Economy Consumer Spending/InvestingBusiness Income/RevenueProduct MarketGoods and Services SoldGoods and Services Purchased:TaxesTaxesHouseholdsExpendituresExpendituresFirmsLand, Labor, Capital, EntrepreneurInputs for Production (F.O.P.)TaxesTaxesFactor MarketIncome to Households/IndividualsPayment for F.O.P. – Wages, rent, capital goods
46Role of the Government in a Market Economy Government acts an informer, protector, provider, and regulatorGovernment has the responsibility to protect property rights, contracts and other business activities
47Role of the Government in a Market Economy Government has the responsibility to protect property rights, honor contracts, protect against discrimination, monopolies or unfair business practices
48Role of the Government as Informer Make sure that producers provide consumers with accurate informationConsumers use govt. info. to protect themselves from dangerous products and fraudulent claims.
49Role of Government as Regulator Role of government as a protector:Federal government acts to preserve competition, regulates airlines, communications, banking, etc.Though they do not control it, they impose various restrictions on the private marketGas stations, must dispose of used motor oil properlyZoning laws, prevent homeowners from running businesses out of their homes
50Negative Effects of Regulation Government regulation can have negative effects on businesses and consumersNegative effects:Government rules can increase the cost of businessStifled competition can lead to high pricesIncrease of governmental spending can lead to higher taxes
51Government as a Provider Public sector- the part of the economy that involves the goods provided by the governmentPrivate sector- the part of the economy that involves the goods provided by private firms
52Public Goods and Services Public Good/Service - A shared good or service for which it would be impractical to make consumers pay individually and to exclude nonpayers.Education, military, National Park, Snow Removal, Fireman
53Redistribution of Income When the government takes from one group and reallocates to another groupWelfare, Social Security, Unemployment, Food Stamps, etc.
54Market FailureThe market, on its own, does not distribute resources efficiently, choices made by individuals determine what goods get made, how, and how muchFree riders, monopoly, roads and bridges in a sparsely populated area, etc.
55Negative Externalities Negative Externality – negative effects experienced by people that had no part in the consumption of a good or serviceCigarette smoker, chemical waste dumping, foreclosures and property values, etc.
56Negative Externalities Negative Externality – negative effects experienced by people that had no part in the consumption of a good or service
57Positive Externalities Goods/services that generate benefits to many people, not just those who pay for the goodsEducation, better technology, medicine, etc.
58Free-Rider ProblemA free rider is someone who would not choose to pay for a certain good or service, but who would get the benefits of it anyway if it were provided as a public good
59Application QuestionWrite an example of a negative and positive externality.What kind of government regulation could be used to eliminate your negative externality?
60Command EconomiesCommand – central authority owns and operates the Factors of ProductionCentrally Planned Economy – central government answers the three economic questions; WHAT to produce, HOW to produce, and FOR WHOM to produceOppose private property, free market pricing, economic freedom
61Socialism and Communism Karl Marx – German social philosopher that studied economic systems in EuropeCommunist Manifesto – written by Marx and Frederick Engels became basis for modern-day command economiesThought capitalism would fail because it put too much wealth in the hands of few and left everyone else poorBelieved in a “no-class” system, where all share in wealth/powerSocialism – distribution of wealth and F.O.P. equally amongst societyCommunism – political and economic system with centralized economic decision-makingAuthoritarian Government – exact strict obedience from their citizens; do not allow individual freedom
62Chapter 2 Section 2 – Daily Assignment Economic Profile Adam Smith pgs. 33What was Adam Smith’s ethnic and professional background?What was the name of the book that he published; when was it published?What did Smith identify in the book?What did he assert about specialization and division of labor?What did he believe about the role of government in the economy?Define the French term Laissez Faire; why did Smith believe in Laissez-Faire economics?What is meant by his metaphor of the Invisible Hand?How do both consumers and businesses benefit from this philosophy?Scottish, Philosopher, ProfessorWealth of NationsLand, labor and capital as the factors of production that generate wealthProductivity increases through specializationGovernment must leave individuals as free as possible to pursue their interestsIndividuals try to pursue their own self-interest will benefit all of societyLet them do as they pleaseConsumers buy what they want, producers supply for profit
63Chapter 2 Section 3 – Daily Assignment Questions “The Former Soviet Union” pgs. 36-38 How did the Soviet Union arise?Where did Soviet planners allocate the factors of production?How did the Soviet Union control agriculture?What three industries did Soviet Planners favor?How did the Soviet Union view entrepreneurial endeavors?What was the quote used by Soviet consumers as a joke?Why were Soviet Consumers’ left unsatisfied?Page 39 – Russia in CrisisHow did many Russians initially respond to the Communist collapse?What happened over the next decade?How did Russia deal with corruption?What were some characteristics of Russia’s financial problems?What evidence can be seen that success is in sight?
64Do Now Ch 2 Section 3 What economic system matches each scenario? You have two cows.You trade one to your neighbour for a bull.You only produce what you need to survive.Scenario 2The State takes both and gives you just enough milk to liveScenario 3You sell one and buy a bull.Your herd multiplies, and your wealth grows.You sell your herd and retire on the income.What economic system matches each scenario?Which scenario do you think is the most ideal and why?Which scenario do you think sounds the most like the United States? Why?What countries do you know of that could fall into scenario 2.
65What to Produce? How to Produce it? For Whom to Produce? Tradition CommandMarketWhat to Produce?How to Produce it?For Whom to Produce?Whatever is necessary for the tribe to survive.Whatever the government tells them to produce.Whatever is in demand by the consumers.The most efficient method possible; technological innovations.Based on tradition, habit and custom; the way its always been done.Based on the government.The tribeWhoever the government tells them to produce it for.Consumers that are willing to purchase.
66Daily Assignment – Comparing Economic Systems TraditionCommandMarket18.104.22.168.22.214.171.124.9.Central African MbutiNorth KoreaUnited StatesCanadaJapanSouth KoreaSingaporeGermanyFranceGreat BritainWestern EuropeAustralian AboriginesCubaInuits of CanadaChinaExamplesFormer Soviet UnionEveryone knows their role in society/economyChange economic direction in a short timeAdjust to change over timeIndividual economic freedomLimited government interferenceDecision-making is decentralizedVariety of goods and servicesHigh degree of consumer satisfactionAdvantagesHealth and public services are available at little or no cost (regardless of income)Economic questions are answered based on traditionDiscourages new ideasNot designed to meet wants of consumersDoes not provide basic needs for everyoneLack of public goods by private marketsHigh degree of uncertainty, job loss, competitionMarket failures (monopoly)Does not give incentive to work hardDisadvantagesLarge decision-making bureaucracyLack of progress, lower standard of livingLack of economic flexibilityLack of economic freedom, profit motive
67Thanksgiving, bouquet toss, shaking hands What traditions are mentioned regarding American society?List some additional traditions that you have in your family.How did the Inuit exemplify a traditional economic system?How did the State Planning Commission determine the direction of the Soviet economy?What shortcut did Soviet workers take in order to fill their quotas; what did it lead to?How did the State Planning Commission respond to a shortage of male workers?Describe what a “dollar vote” indicates.Describe how the market adjusted from the 1970s gas shortage, to the 1980s.What examples are provided of the various goods and services provided in a market economy?How do both the majority and minority end up satisfied in a market economy?What are the three conditions that must be met to ensure that market economies do not fail?Thanksgiving, bouquet toss, shaking handsOpen one present on Christmas EveShare the spoils of the huntDetermined the needs based on governmental decisionsMade their products heavierMade the women go to workSpending money to show firms what to producePeople bought less gas-guzzling cars and bought more fuel-efficient onesInternet, electric dog collars, Cable TVBoth can get what they wantCompetition, Flexibility, Access to information
68Modern EconomiesFree Enterprise – competition in the marketplace is allowed to flourish with no interference from governmentModified Free Enterprise (mixed economy) – businesses are free to compete with some government regulation/interventionCentrally Planned Free MarketMexico FranceSouth AfricaPoland JapanUnited Kingdom Hong KongCanada SingaporeUnited StatesNorth KoreaCubaIranChina
69Laissez Faire in a Modern Economy Laissez Faire – no government intervention in the economySome government intervention is necessary in the economy; some needs are difficult to answer in the marketplaceNational defense, roads and highways, education, etc…Government acts a protector, regulator and overseer of economy
70Government Money Taxes from both households and businesses Income tax, state income tax, social security, Medicare/Medicaid, unemployment insurance, etc.
71Government in the Factor Market Government purchases land, labor, and capital from householdsUnited States gov’t pays 2.8 million employees $9.7 billion for labor
72Government in the Product Market Government purchases goods and services from firms (businesses)Office supplies, telephones, computers, etc.
73Daily Assignment – Economic Goals MarketCommandTraditionEconomic FreedomYes - People can produce what they want, how they want to and for whomNo - Many aspects of economic activity are tightly controlled by the government No - Extremely limited, a person’s role in society is based on custom, heritage and traditionEconomic EfficiencyEconomic SecurityEconomic PredictabilityEconomic EquityEconomic GrowthEconomic InnovationYes – specialization, wise use of resources leads to profitNo – Many resources go unused, Cuba 50% of fertile land is not utilizedYes/No – Tribal living does not waste resources/lack modern standards of efficiency and growthNo – a pure market economy prescribes to laissez faire.(mixed economies have some safeguards)Yes - employment and government sponsored programs are assuredSome – your job and provisions are guaranteed by your tribeYes – most market economies have high levels of resource predictabilityNo – command economies struggle to meet the needs of the consumerNo – in most cases unpredictable, because resources can become scarceYes – fairly paid based on your skillsNo – private incentive, profit motive do not existNo – based on customary means of production not fair pay for acquired skillsYes - a fast rate due to competition and profit motiveSlow - lack of growth because of a lack of efficiency and profit motiveNo - lack of growth due to a lack of productivity and innovationYes – innovation and technology leads to profitLimited – lack of innovation because of a lack of profit motiveNo – lack of modern innovations
74Junk!!! Chapter 2 – VIS Terms Traditional Economy Command Economy Market EconomyMarketFree MarketSpecializationDivision of LaborHouseholdConsumerFirmSupplierProduct MarketFactor MarketCentrally Planned Economy15. Socialism16. Communism17. Authoritarian18. Laissez-FaireJunk!!!
75Daily Assignment Group Presentations Using the Chart Below, identify each groups Economic Goals and Societal Values and the picture they used to represent each goal.Group NumberEconomic GoalPicture
76Include On Your Test Junk!!! Name Date (1-30) Class Period Chapter 2 TestID: A, B, CJunk!!!
77Due Today Junk!!! Economic Systems D.A. Video Questions - North Korea Circular Flow (Elisa and Marcella)Comparing Economic Systems - Reflection Questions and ChartFree Enterprise Flow ChartStudy Guide Chapter 2CW PuzzleTerms Ch. 2Daily Tens (9)Essential Questions (3)NotesTest Standard Sheet (include original test answers + corrections)Junk!!!
78Study Guide Chapter 2 Economic System What to produce, How to produce them, Who to produce them forEconomic: efficiency, freedom, security, predictability, equity, growth, innovation, additional goalsTradition, custom, ritual, habitCentral planners dictate the what, how, for whomBuying and selling of households and firmsMarketMarket economyCapitalismHouseholds and FirmsInput is something used to produce and output, which is a final good or serviceProductFactorAdam Smith, Wealth of Nations
79Study Guide Chapter 2Be limited in its role in the economy, “Let them do as they please”.Invisible HandSee Circular Flowa) Productwhen it changed hands from the household to the firmFactor, laborGrills, hostesses, cashiersFactorKarl Marx, Communist ManifestoThat it would fail because it put too much money in the hands of the rich and not in the hands of the poorCommunism, SocialismAuthoritarianEconomic FreedomProperty RightsProfit MotiveVoluntary ExchangeCompetition
80Include on Test Name Date (9-4) Class Period ID: A, B or C Test Economics Systems
82Extra Credit Give an example of a positive and negative incentive. Explain why the United States is not a true “pure market/free enterprise” system.
83Extra CreditWhich type of economic system do you think is the best method for allocating scarce resources? Explain why.Other than the goal that you identified on your test, write the one that you think is the next most important. Explain why.
84Economic Goals and Societal Values - pgs. 23-27 Economic Goal and Societal ValuesSummaryExampleEconomic EfficiencyEconomic FreedomEconomic Security and PredictabilityEconomic EquityEconomic Growth and InnovationAdditional GoalsManufacturer knowing the best way to use resources wisely (Assembly Line)Making the most of scarce resourcesFreedom from government intervention in the production and distribution of goods/servicesWorking where you want, spending money the way that you want, owning a business, etc.Knowing that goods and services will be available, payments made on time, government will provide a safety net in times of economic downturnsSecurity – Unemployment Checks, Social Security, Stimulus MoneyPredictability – gas at gas pumps, food at storeLawyers earn more than nurses, computer programmers more than truck driversFairness, being paid according to your skill level, not being discriminated againstEconomic growth refers to improving standard of living and GDP. Innovation, improving existing technology.Agricultural age to industrial age to information age. Innovations in computers, communication.Future goal for society.Environmental protection, full employment, universal medical care.
85Circular Flow Model of Economic Activity Consumer Spending/InvestingBusiness Income/RevenueProduct MarketGoods and Services Purchased: Caramel FrappuccinoGoods and Services SoldHouseholdsFirmsLand, Labor, Capital, EntrepreneursInputs for Production (F.O.P.)Factor MarketIncome to Households/IndividualsPayment for F.O.P. – Wages, rent, capital goods
86Tradition – based on habit, ritual, custom Essential Question #1 +2How do each of the economic systems answer the three economic questions?How does the Circular Flow model show a market economy?Tradition – based on habit, ritual, customMarket - based on buyers and sellersCommand – based on central planners/governmentMixed – market based with some government regulationFlow of money from households to firms (product market), firms to households (factor market).Flow of final goods and services (outputs) to households (product market), and factors of production (inputs) to the firm (factor market).3. What do the economic and social goals help us to understand?Explain how each society provide goods and services for their people in light of scarce resources.
87Tradition – based on habit, ritual, custom Essential Question #1How do each of the economic systems answer the three economic questions?Tradition – based on habit, ritual, customMarket - based on buyers and sellersCommand – based on central planners/government
88Essential Question # 33. What do the economic and social goals help us to understand?Explain how each society provide goods and services for their people in light of scarce resources.
90Vince Lombardi “What it Takes To Be Number 1” "Winning is not a sometime thing; it's an all the time thing. You don't win once in a while; you don't do things right once in a while; you do them right all the time. Winning is a habit. Unfortunately, so is losing. There is no room for second place. There is only one place in my game, and that's first place. I have finished second twice in my time at Green Bay, and I don't ever want to finish second again. There is a second place bowl game, but it is a game for losers played by losers. It is and always has been an American zeal to be first in anything we do, and to win, and to win, and to win. Every time a football player goes to play his trade he's got to play from the ground up-from the soles of his feet right up to his head. Every inch of him has to play. Some guys play with their heads. That's O.K. You've got to be smart to be number one in any business. But more importantly, you've got to play with your heart, with every fiber of your body. If you're lucky enough to find a guy with a lot of head and a lot of heart, he's never going to come off the field second.
91Vince Lombardi “What it Takes To Be Number 1” Running a football team is no different than running any other kind of organization-an army, a political party or a business. The principles are the same. The object is to win-to beat the other guy. Maybe that sounds hard or cruel. I don't think it is. It is a reality of life that men are competitive and the most competitive games draw the most competitive men. That's why they are there-to compete. To know the rules and objectives when they get in the game. The object is to win fairly, squarely, by the rules-but to win. And in truth, I've never known a man worth his salt who in the long run, deep down in his heart, didn't appreciate the grind, the discipline. There is something in good men that really yearns for discipline and the harsh reality of head to head combat. I don't say these things because I believe in the "brute" nature of man or that men must be brutalized to be combative. I believe in God, and I believe in human decency. But I firmly believe that any man's finest hour, the greatest fulfillment of all that he holds dear, is that moment when he has worked his heart out in a good cause and lies exhausted on the field of battle - victorious."...Vince Lombardi
92Competition ArticleDo you agree with Vincent Lombardi’s assertion that people are born with the desire to compete why or why not?What areas do you see competition in the economy of the United States ?How is competition beneficial to our economy/society?How is it harmful to our economy/society?