Why Semester Economics? Using the principles discussed in this unit, you’ll be able to describe the financial world around you and make sound personal and business decisions.

It’s also a required course But WHY is it required?

Because Studying ECONOMICS . . . Helps You to Decide Who to Vote For in an Election Helps You to Understand Your Boss’ Thinking Helps You to Make Money Every Day

The Benefits of Studying ECONOMICS Helps You to Understand World News Helps You Participate in Our System, and Helps You to Spend Your Money Wisely

The Benefits of Studying ECONOMICS But, these young folks from over the pond say it best . . . . https://www.youtube.com/watch?v=0Yto5fz5Zok For more on “Why Study Economics” http://whystudyeconomics.ac.uk/

Be Able to Define Economics OBJECTIVE Be Able to Define Economics

ECONOMICS The Process of Making Decisions to Satisfy Unlimited Wants & Needs Using Limited Resources

ECONOMICS The Process of Making Decisions to Satisfy Unlimited Wants & Needs Using Limited Resources

ECONOMICS The Process of Making Decisions to Satisfy Unlimited Wants & Needs Using Limited Resources What the Heck Does That Mean?

ECONOMICS The Process of Making Decisions To Satisfy Unlimited Wants & Needs Using Limited Resources

ECONOMICS All Together Now, Say It With Me. . . . “The Process of Making Decisions To Satisfy Unlimited Wants & Needs Using Limited Resources.”

ECONOMICS “The Process of Making Decisions To Satisfy Unlimited Wants & Needs Using Limited Resources.” But how could you state this definition more simplistically?

ECONOMICS Economics is Making Decisions So That I . . .

Economics is Making Decisions So That I . . Get the Most for the Least!!!

We Get the Most for the Least!!! ECONOMICS We Get the Most for the Least!!! Economics is Making Decisions So That I . . Crash Course Economics Starting at 1:50 https://www.youtube.com/watch?v=3ez10ADR_gM End at 3:16

What Are Your Economic Decisions? Should I Get Out of Bed in the Morning? What Classes Should I Take? What Type of Car Should I Buy? What’s For Dinner? Who Should I Vote For?

EPF 1 - The student will demonstrate knowledge of basic economic concepts and structures.

What Are Your Economic Decisions? Seed Question What is an economic decision you have had to make in your life?

Three Important Economic Concepts Rewards Costs Decisions

Three Important Economic Concepts Rewards - Benefits (What I Get Out Of It) Costs - What Resources I Give Up (Also Called “Trade Offs”) Decisions - Our Choices

Be Able to Provide Examples of . . . Benefits Economic Resources OBJECTIVE Be Able to Provide Examples of . . . Benefits Economic Resources

Benefits What a Decision Will Do For Me: (Make Me $$$ for example)

Benefits What a Decision Will Do For Me: (Give me a Sense of Relaxation)

Benefits What a Decision Will Do For Me: (Give Me Joy)

Benefits What a Decision Will Do For Me: Give Me Personal Satisfaction

Benefits What a Decision Will Do For Me: Give Me Confidence

Benefits What a Decision Will Do For Me: Recognition By My Peers

Three Economic Resources LAND LABOR CAPITAL &

Three Economic Resources LAND Natural Resources LABOR People with Skills CAPITAL Money or things . . . &

Fourth Economic Resources??? ENTREPRENEURS LAND Natural Resources LABOR People with Skills CAPITAL Money or things . . . &

Fourth Economic Resource??? ENTREPRENEURS LAND Natural Resources LABOR People with Skills CAPITAL Money or things . . . People Who Own & Operate Their Own Business &

Fourth Economic Resource??? ENTREPRENEURS People who own & operate their own business These 4 things together = “The Factors of Production” LAND Natural Resources LABOR People with Skills CAPITAL Money or things . . . &

People who own & operate their own business Economic Resources ENTREPRENEURS People who own & operate their own business What makes these resources particularly valuable is their relative scarcity LAND Natural Resources LABOR People with Skills CAPITAL Money or things . . . &

People who own & operate their own business Economic Resources ENTREPRENEURS People who own & operate their own business LAND Natural Resources LABOR People with Skills CAPITAL Money or things . . . What makes these resources particularly valuable is their relative scarcity & means that we do not have enough resources to satisfy all our wants and needs.

What Are Your Economic Decisions? Seed Question What in your life would you describe as your economic resources, desired rewards, and most difficult to give up costs?

Other Important Economic Concepts Opportunity Costs - the loss of potential gain from other alternatives when one alternative is chosen Unintended Consequences - outcomes that are not the ones foreseen and intended by a purposeful action

Other Important Economic Concepts Marginal Benefits - the additional satisfaction or utility that a person receives from consuming an additional unit of a good or service Marginal Costs - the cost added by producing one extra item of a product.

How Does a Country Make its Economic Decisions? QUESTION How Does a Country Make its Economic Decisions?

Through the Use of an Economic System ANSWER Through the Use of an Economic System

Through the Use of an Economic System (or Process Perhaps?) ANSWER Through the Use of an Economic System (or Process Perhaps?)

OBJECTIVE Be Able to List the Three Basic Economic Questions Every Country’s Economic System Must Answer

Three Basic Economic Questions What Should We Produce? How Should We Produce? Who Gets What We Produce?

OBJECTIVE Be Able to List the Three Basic Economic Questions Every Country’s Economic System Must Answer They’re not much different than the questions you have to make in your own life

OBJECTIVE Be Able to List the Three Basic Economic Questions Every Country’s Economic System Must Answer But we’re going to look at the questions from a much larger perspective, from that of an entire country’s and that country is called . . .

OBJECTIVE Be Able to List the Three Basic Economic Questions Every Country’s Economic System Must Answer (The Kingdom of Mocha) https://www.youtube.com/watch?v=SSYmVKsHtnU&list=PL6s6uQx1l0ANtV-Anm51nGxiIp-MZdmJp

OBJECTIVE Be Able to List the Three Basic Economic Questions Every Country’s Economic System Must Answer (In the Kingdom of Mocha) Seed Question: In the Kingdom, . . . What did the residents produce? How did they produce? Who received what they produced

OBJECTIVE Be Able to ANSWER the Three Basic Economic Questions Every Country’s Economic System Must Answer (On Your Own Island) Seed Question: In your Kingdom, . . . What will the residents produce? How will they produce? Who will receive what they produced?

OBJECTIVE Be Able to ANSWER the Three Basic Economic Questions Every Country’s Economic System Must Answer (On Your Own Island) Seed Question: In your Kingdom, . . . What will the residents produce? How will they produce? Who will receive what they produced? TOUGH CALL? But that’s essentially what we’re asking our government to do, answer these questions!

OBJECTIVE Be Able to Identify the Three Primary Economic Systems Used in the World Today

Economic Systems of the World Free Enterprise Capitalism Market Economy Socialism Mixed Economy Democratic Socialism Communism Planned Economy Command Economy

OBJECTIVE Be Able to Describe the Important Characteristics of Each Type of Economic System

Important Characteristics of All Economic Systems Allowance for Business Ownership

Important Characteristics of All Economic Systems Production of Consumer Products

Important Characteristics of All Economic Systems The Amount of Competition

Important Characteristics of All Economic Systems The Amount of Employment Available

Important Characteristics of All Economic Systems Private Property Rights

Important Characteristics of All Economic Systems Profit Potential

Important Characteristics of All Economic Systems Social Services Available

OBJECTIVE Using the Important Characteristics of All Economics Systems, Describe Each Economic System

Primary Economic Systems

Primary Economic Systems Using a loose leaf sheet of paper, make a chart like this one please. Turn the paper so it offers a “landscaped” (sideways) orientation .

OBJECTIVE & ASSIGNMENT Based on your chart, be able to identify two advantages & two disadvantages of each economic system

What Economic System Do We Use in This Country? QUESTION What Economic System Do We Use in This Country?

The Free Enterprise System ANSWER The Free Enterprise System

The Free Enterprise System ANSWER The Free Enterprise System As described by Adam Smith in The Wealth of Nations

The Free Enterprise System ANSWER The Free Enterprise System As described by Adam Smith in The Wealth of Nations https://www.youtube.com/watch?v=ojYqv9TmZbM

The Free Enterprise System ANSWER The Free Enterprise System As described by Adam Smith in The Wealth of Nations Three Major Points Division of Labor The Nature of Wages Foreign Markets

The Free Enterprise System ANSWER The Free Enterprise System As described by Adam Smith in The Wealth of Nations And Inventor of the phrase “The Invisible Hand” https://www.youtube.com/watch?v=E4YlOyugato

The Free Enterprise System Seed Question What in our country’s history led us to using the Free Enterprise System?

Studying Using Quizlet https://www.youtube.com/watch?v=VyK09manjFU

Story A Lesson on Socialism "An economics professor said he had never failed a single student before but had, once, failed an entire class. The class had insisted that socialism worked - and that no one would be poor and no one would be rich, a great equalizer for all, for society. The professor then said ok, we will have an experiment in this class on socialism. He said that all grades would be averaged and everyone would receive the same grade so no one would fail and no one would receive an A. After the first test the grades were averaged and everyone was given a B. The students who studied hard were upset, and the students who studied little were happy. But, as the second test rolled around, the students who hadn't studied much for the first test had studied even less, and the ones who studied hard weren't motivated to study hard again, and they decided they wanted a free ride too; so they studied little. The second Test average was a D! No one was happy. When the 3rd test rolled around the average was an F. The scores never increased as bickering, blame, name calling all resulted in hard feelings and no one would study for anyone else. All failed .... and the professor told them that the socialism they wanted would ultimately fail, as they had, because the reward of success normally goes to those that work harder, but when government takes the reward away; few will try so no one will succeed."