Do Now: 2/09/ Describe the steps of critical thinking that a business person needs to know. 2. What is the Definition of Economics? Today we talk Economics

If Economics is the study of how wealth is created and distributed then how does a country determine what is the best systems to use to determine how the factors of production are used to meet the needs of society. Market (free) Economy Individuals own and operate most of the businesses, they decide what to produce and buy, and the market determines quantities sold and the prices(supply/demand). The role of government is limited to umpire and rule maker, defending against foreign enemies, ensuring internal order, and furnishing public services and education. But no government interference in the economy. Command Economy Government decides what goods and services will be produced, how they will be produced, for whom available goods and services will be produced, and who owns and controls the major factors of production.

Do Now: 2/10/ Describe the differences between these two types of economic systems to meet the needs of society. 1. Free market economy 2. Command economy Today discuss how nations determine or choose what type of economic system they want or need.

4 Questions Determine a Nations Economic System 1.What goods and services –and how much of ea. – will be produced ? 2.How will these goods and services be produced ? 3.For whom will the goods and services be produced ? 4.Who owns and who controls the major factors of production ?

Capitalism, Free Markets, Free Enterprise Same Societies best interests are served when individuals are allowed to pursue their own self interest. An individuals personal gain benefits others and the nations economy. The creation of wealth is the concern of individuals not governments Private individuals should own the resources and determine how to use them and enjoy the profits This economic freedom ensures competition.

The Issues of Capitalism Right to Create Wealth Right to Own Private Property and Resources Right to Economic freedom and Freedom to choose Right to Limited Government Intervention

Mixed Economy A combination of both – The State takes cares of people’s needs. – The Marketplace takes care of people’s wants. United States

Grade 10 Business Do Now: Today: We will discuss Stakeholders, Business owners risk, & how Businesses must operate within the parameters of a nation’s economic system. A business must combine four resources effectively to be successful. When combined well businesses are successful and profitable. And Shareholders own shares of stock in a corporation to share in those profits. How do stakeholders differ from shareholders? Please explain in a paragraph.

Today : 1.Answer the questions below typed professionally into a word document, name it Advantages vs Disadvantages, and save to your business folder. 2. Save your vocabulary to your folder too. Name two basically opposing economic systems and explain what you think are the advantages and disadvantages are of each? Explain how prices for goods and services are determined and who determines them in a capitalistic economic system? Who was Adam Smith, why is he famous, and what does he have to do with economics. Know about Laissaz faire & invisible hand. (all the above will show up on a test in the future).