Presentation on theme: "Brain Jogger How do people get what they need to live? Give three bullet points:"— Presentation transcript:
Brain Jogger How do people get what they need to live? Give three bullet points:
Intro to Economics
Economics- The study of how people get what they want. Production- how things are made Distribution- how you get the items Consumption- using the items Natural Resources-gift of nature
SCARECITY There is an unlimited amount of need, but a limited amount of resources.
Currency- Examples U.S.-Dollar Mexico-Peso European Union- Euro
Brain Jogger 1.Scarcity ___ A. using a product or service 2.Production ___ B. The study of how people get 3.Economics ___ what they want and need. 4.Consumption ___ C. Gifts of Nature 5.Distribution ___ D. A person who decides to buy or 6.Natural Resources ___ use a good or service. 7.Consumer ___ E. Getting items to consumers 8.Currency ___ F. Money G. Unlimited Needs, Limited resources H. Making a Product to sell or trade Please put how many they got right over 8. Ex: they miss 2 would look like 6/8 G H B A E C D F Instructions: Get out a half sheet of paper and number to 8. Match the definitions with the correct definition.
Wrong Answers Grade
1. WHAT TO PRODUCE? (What kinds of goods and services should be produced?) 2. HOW TO PRODUCE? (What productive resources are used to produce goods and services?) 3. FOR WHOM TO PRODUCE? (Who gets to have the goods and services?
Three Types of Economic Systems: 1. Traditional Economy 2. Command Economy 3. Market Economy * Most countries are… Mixed Economies! (Market + Command)
Market Economy Is an economy system managed by the people. Based on supply and demand. I love Doritos!!! And so does everyone else!!! Doritos has increased sales!!! Because people can’t resist them!!! Doritos increases their prices!!! Until.. People do not buy as many Doritos
Market Economy Who decides what to produce? Businesses base decisions on supply and demand and free enterprise (PRICE) Who decides how to produce goods and services? Businesses decide how to produce goods Who are the goods and services produced for? consumers
Market Economy There are no truly pure Market economies, but the United States is close.
Think, Pair, Share Market People get more choices and they get to have a say. Govt. does not tell you what to do. Govt. does not get to protect the consumer. Greed can control business decisions.
Pure CommandPure Market Which would you rather live in? A Pure Command or a Pure Market economy. Why? 4 minutes (two sentences)
Command Economy The government controls the economy Government controls: – What goods and services are sold, produced. – What jobs people can have.
Command Economy Who decides what to produce? Government makes all economic decisions Who decides how to produce goods and services? Government decides how to make goods/services Who are the goods and services produced for? Whoever the government decides to give them to
Command System Countries with communist governments have Command economies Examples: There are no truly pure command economic systems, but close countries are: North Korea, former Soviet Union, Cuba *Germany and Russia have moved away from having a Command economy since Now they have a Mixed economy.
Think, Pair, Share Command Government inspected product/service More people might receive services People have jobs Govt. does not have competition Product usually have poor quality Not what the consumer wants
Traditional Economy Economy based on traditions, routines, and beliefs. The product is usually sold in a market
Traditional Economy Who decides what to produce? People follow their customs and make what their ancestors made (Look to the PAST) Who decides how to produce goods & services? People grow & make things the same way that their ancestors did (Look to the PAST) Who are the goods & services produced for? People in the village who need them
Traditional Economy Examples: Villages in Africa and South America the Inuit tribes in Canada the caste system in parts of rural India the Aborigines in Australia
Think, Pair, Share Traditional You know what you will do the rest of your life You can Barter for goods/services Products are of good quality. You know what you will do the rest of your life Limited resources/tech. Limited selection
Economic Systems Market Command Traditional ….But No Country has a 100% Market, Command, or Traditional Economy So……What do they have? Market Command Traditional ….But No Country has a 100% Market, Command, or Traditional Economy So……What do they have?
Economy Continuum Pure Command Economy Pure Market Economy Mixed Economy
It is a mixture of state and private ownership and control. Every economy is mixed. The post office is run by the governement! Farmers Markets are run by the people. Railways can be run by the government.
Mixed Economy Who decides what to produce? Businesses AND the government decide what to produce Who decides how to produce goods & services? Businesses AND the government Who are the goods & services produced for? Consumers
1.Traditional A. Controlled by the Govt. 2.Command B. Controlled by the past. 3.Market C. Mixture of private and govt. control. 4.Mixed D. Controlled by the people
Economy Continuum CommandMarket Cuba 27.7% Russia 50.5% Germany 71.8% Australia 82.5% U.K. 74.5% North Korea 1% U.S. 77.8% North Korea Cuba Russia Germany U.S. AustraliaU.K.
Guess that Economy I will give you an example of a country’s economy. You need to tell me what type of economic system they have.
Example # 1 If my father and mother make baskets in a small village in Yemen and they are training me to take over their business when they die, what type of economic system is being described?
Example # 2 McDonalds comes out with a new type fries made out of asparagus. After a couple months, McDonalds sees that none of their customers are buying the new fries, so they stop selling them. This is an example of ________.
Example # 3 The government of Saudi Arabia tells it citizens that they can only buy their government made tires, and no other country's or company's tires. This is an example of ________.
Example #4 The USA, for the most part, lets people make the economic decisions in the country, but the government does step in to make sure that citizens are not taken advantage of by other people or companies. This is an example of ________.
Activity Take the assigned economy and answer the following questions and charts: QuestionsAnswersImpacts What type of economy do you have? What is your country’s name? Where is your country located? What type of businesses do you have? Who makes most of the important economic decisions in your country? Complications with your economy:
Why is a Mixed Economy not considered an economic system like command, market, and traditional economies? Two sentences please.
GDP GDP or Gross Domestic Product is the sum of goods and services produced in an economy during a period of time (usually a year). The Gross Domestic Product measures the value of economic activity within a country. GDP
Investment in Human Capital (education and training) By investing in human capital, you increase production, improve company, increase GDP.
Investment in capital (factories, machinery, and technology) By investing in capital, you increase production, improve company, increase GDP.
Entrepreneur One who innovates and takes risks in developing a product or business.
Natural Resources Affect Growth If a country has a lot of resources, great! It will help their economy. But they must also invest in other things too!!! Climate also affects growth. (Drought does not help things) Nigeria has a lot of oil, but did not invest in farming.
Hard for companies to Invest in Africa Why? – Unstable governments and corruption. – Weak work force 13% of South Africans are HIV positive (AIDS) – Poor work conditions You’re not getting my money!!