9-13-10 DO NOW Pick up the materials on the front table. Syllabus Your name tag Sit in your assigned seat. (check list for number if you are unsure)

9-13-10 AGENDA Introduction to the course Wiki Google/Gmail account Birthday Game Show What You Know 2

CLOSURE What are your expectations for this course – in other words – what do you want to learn???

INTRO TO BUSINESS DO NOW… 9/11/09 Collect your name card and place it on your computer screen. Sit down in your assigned seat from Wednesday Define the following 2 terms in your own words and give 3 examples of each: Needs Wants 4

-Distinguish between wants and needs Agenda 9-11-09 -Distinguish between wants and needs -Define how wants and needs are satisfied -Group Activity Introduction to Business

Wants and Needs Wants are the things you wish you could have. Each person has wants. Necessary wants are needs. 6

Satisfying Wants and Needs With Goods and Services Goods can be physically weighed or measured. (tangible) Goods satisfy your wants and needs for material things that you can see or touch. 7

Introduction to Business

Satisfying Wants and Needs With Goods and Services Services are tasks that people or machines perform. (intangible) Services also satisfy some of your wants for things you can’t see or touch. 9

Unlimited Wants, Limited Resources Most people have unlimited wants for goods and services. The more money you make, the more goods or services you want. 10

Unlimited Wants, Limited Resources A resource is anything that people can use to make or obtain what they need or want. What are some examples of resources??? 11

Unlimited Wants, Limited Resources The problem of unlimited wants and limited resources affects individuals, companies, and nations. WHY??? 12

Unlimited Wants, Limited Resources Resources limit the number of wants people can satisfy. 13

Introduction to Business

Deciding on Your Resources The decision-making process has five essential steps: Identify the problem. List the alternatives. Determine the pros and cons. Make the best decision. Evaluate your decision. You have $100 as a resource to help you with your math class. Whatever action you choose will have to last you the entire school year. Apply the 5 step process above. 15

ILDME Ida Likes Decorating Many Elephants Introduction to Business

COOPERATIVE LEARNING ACTIVITY Each and every day, you come to school with everything you will need for the entire day – books, lunch, school supplies, cell phones, jackets, etc. JanSport has developed backpacks with compartments designed to fit new technology products; straps and lanyards carry extras. As a consumer you affect business by buying certain products or services. Business can also affect you by offering certain products or services.

YOUR MISSION Decide on a product or service to make your life easier and better. Draw a poster size blueprint of the product or a diagram representing the product or service. Consider…. Who are the potential customers for your product? How will it make their lives better or easier?

CLOSURE: In your notebook, answer the following question: Does media sway the public’s wants and needs?

Introduction To Business DO NOW 9-20-10 REVIEW from last class… How do we satisfy our needs and wants? Explain the difference between “tangible” and “intangible”. Introduction to Business

FLOCABULARY! http://theweekinrap.com/

Private Wants versus Public Wants Wants are the things you wish you could have. Each person has wants. A group of people may also share the same wants. Although these wants are shared, they are considered private wants. Some wants are widely shared by many people. These wants are no longer considered private but become public wants, such as highways, drinking water, and education. For the most part local, state and federal governments satisfy public wants.

Business is any activity that seeks profit by providing goods or services to others. Businesses satisfy people’s basic needs all the way to their lavish wants. Competition and profit motivate these businesses to continually strive for your business. Examples of Service business??? 24

Introduction to Business

Business Activities These activities happen behind every product or service: Organizing Managing Producing Marketing Introduction to Business

Profit is the motivation for taking the risk to start a business. Profit is the amount of money left over after a business has paid for the cost of producing its goods and services. Profit is the motivation for taking the risk to start a business. 27

Competition is a direct response to consumers’ wants and needs. Companies thrive on competition, or the contest between businesses to win customers. Competition is a direct response to consumers’ wants and needs. 28

Can you think of some competitors in the following categories? fast food pizza delivery electronic retailers commercial airlines luxury automobiles cable TV networks toothpastes Introduction to Business

Business is aware of your changing needs and wants. A consumer is a person who selects, purchases, uses, or disposes of goods or services. Business is aware of your changing needs and wants. 30

Calculating Profit Sue and Reggie need to raise $100 for their school choir trip. They plan to make and sell cookies at their school. They spend $22 on ingredients and price the cookies at 75 cents a piece. How many cookies do they need to sell to make a $100 profit? You may log into the computer and use the calculator tool to complete this problem. Introduction to Business

Calculating Profit Solution Add the cost of the materials ($22) to the amount they hope to fundraise ($1oo). Total is $122 They plan to sell the cookies for $0.75. $122/$0.75= 162.6666666666666666666666666667 You must round this to a “whole cookie” Answer= 163 cookies Introduction to Business

TGIF! Have a great weekend  Introduction to Business

Do-Now for 9/21 and 9/22 What are the 5 steps in the decision- making process? _____________ is the amount of money left over after a business has paid for the cost of producing its goods and services. The contest between businesses to win customers is _____. Introduction to Business

Do-Now for 9/21 and 9/22 The decision-making process Identify the problem. List the alternatives. Determine the pros and cons. Make the best decision. Evaluate your decision. Introduction to Business

Do-Now for 9/21 and 9/22 PROFIT is the amount of money left over after a business has paid for the cost of producing its goods and services. The contest between businesses to win customers is COMPETITION. Introduction to Business

Factors of Production A shortage of resources is called scarcity. It exists because human wants for goods and services exceed the quantity of goods and services that can be produced using all available resources. Like individual, governments and societies experience scarcity . . . . A basic economic problem for any society is how to manage its resources. 37

Line at a gas station in Maryland, USA, June 15, 1979. Gas coupon printed but not issued during the 1979 energy crisis Line at a gas station in Maryland, USA, June 15, 1979. Introduction to Business

Factors of Production To meet the wants and needs of its people, a society must produce goods and services. The means to produce them are called economic resources, or factors of production. 39

Natural Resources The raw materials found in nature are called natural resources. Natural resources become factors of production when we use them to produce goods. 40

Natural Resources Some resources, like wheat and cattle, are renewable. They can be reproduced. Other resources are limited, or nonrenewable, like coal, iron, and oil. 41

Human Resources The knowledge, efforts, and skills people bring to their work are called human resources, or labor. 42

Human Resources Labor can be skilled or unskilled, physical or intellectual. One of the biggest problems facing many nations today is not a shortage of labor but a shortage of WHAT??? 43

Capital Resources Capital resources are the things used to produce goods and services, like buildings, materials, and equipment. As the wants and needs of people change, so do the needs for capital resources. 44

What capital resources do you see here in the baseball stadium? Introduction to Business

Entrepreneurial Resources Meeting the changing wants and needs of people requires entrepreneurial resources. 46

Entrepreneurial Resources Entrepreneurs improve on ways to use resources, or create and produce new ones. A key to dealing with scarcity is to develop new resources and technologies. 47

Use The Internet to Research a Natural Material What is it? Renewable or nonrenewable? Could we run out? If so, when is the estimated date? What can you do to conserve this resource? Are there any laws protecting this resource? What products are made from this resource? How is this resource used in the United States, and why do we "need" it? Where does this resource come from? What are the environmental, cultural, and human rights concerns, if any, concerning this resource? What is industry doing to address these concerns? What, if anything, are governments doing to assist the industries and to address these concerns?

Types of Economic Systems Economics is the study of how a society chooses to use resources to produce and distribute goods and services for people’s consumption. Economic activity affects everyday life. 49

Types of Economic Systems The two basic and opposing economic systems that have been developed are: Market economy Command economy 50

Market Economy In a market economy economic decisions are made in the marketplace according to the laws of supply and demand. 51

The Market and Prices Price is the amount of money given or asked for when goods and services are bought or sold. Demand is the amount or quantity of goods and services that consumers are willing to buy at various prices. Supply is the amount of goods and services that producers will provide at various prices. 52

The Market and Prices Demand and supply work together. When the quantity demanded and the quantity supplied meet, the price is called the equilibrium price. 53

Economic Systems Capitalism, or private enterprise, is a market economy system. In a capitalist system, resources are privately owned. 54

Economic Systems A market economy offers incentives. EXAMPLES Profit Competition Problems with a market economy Those who do not have the wanted job skills do not get an income. One or two businesses control the market, thus leading to higher prices and lower quality products 55

Command Economy In a command economy a central authority makes the key economic decisions. A command economy is also called a planned or managed economy. 56

TWO TYPES OF COMMAND ECONOMIES Communism *strong command economy * the state makes all the economic decisions. EX. China & Cuba Socialism *moderate command economy *there is some form of private enterprise EX. France & Sweden 57

COMMAND ECONOMY DISADVANTAGES Little choice of what to buy. The primary advantage of a command economy is that it guarantees everyone an equal standard of living. The standard of living is the amount of goods and services the average citizen can buy. DISADVANTAGES Little choice of what to buy. No incentive for entrepreneurship when you can’t run your own business. 58

Mixed Economy Most nations have a mixed economy, a combination of a market and command economy. The state takes care of people’s needs while the marketplace takes care of people’s wants. 59

ACTIVITY Pick one of the countries listed below: Pick ONE partner (someone you have NOT worked with previously) Economic Research Pick one of the countries listed below: North Korea Japan South Africa Search the internet to find information about their economy Open a Word document and list both of your names. Create a list of words you saw used in the articles to describe the economy and changes in the economy. Based on your research how would you classify this economy?

9/23/10 & 9/24/10 Do-Now Respond to the following: Spencer tells Chloe she thinks they should set up a smoothie bar at school as a fundraiser for FBLA. What four factors of production are involved? PICK UP A STUDY GUIDE SHEET! Mark down these dates in your agenda: Quiz – NEXT Class 9/27/10 or 9/28/10 Unit 1 test on Economics- 10/05/10 & 10/6/10

factors of production Natural: bananas, ice, water Human: Spencer, Chloe, other workers at fundraiser Capital: materials to build bar, blender Entrepreneurial: Spencer’s idea for the fundraiser!

Agenda 9/23/10 & 9/24/10 Discussion: Review types of economic markets Economic Indicators Cooperative Learning Activity- GDP & Standard of Living

Review from last class… Introduction to Business Review from last class… An economy X is the organized way a nation provides for the needs and wants of its people. A country’s resources determine economic activities such as: Manufacturing Buying Selling Transporting Investing

Introduction to Business In a pure market economy X, there is no government involvement in economic decisions. The market is free to answer: What: Consumers decide what should be produced in the market through which products they buy the most. How: Businesses decide how to produce goods and services by being competitive and out-selling their competitors. For whom: The people who have more money are able to buy goods and services. To make money, people are motivated to work and invest their income.

Introduction to Business A command economy X is a system in which a country’s government makes economic decisions and decides: What: One person (often a dictator) or a group of government officials decides what products are needed. How: The government owns all means of production, so it makes the decisions. For whom: Wealth is regulated by the government to equalize everyone. Everything from housing to education is subsidized by the government.

Introduction to Business Mixed Economies Because all economies in the world today are mixed, a meaningful classification depends on how much a government interferes with the free market. Economic systems can be put on a continuum to compare their respective levels of government involvement. Economic freedom to the right of the center encourages competition while systems to the left are more regulated by their governments.

Capitalism Capitalism is a political and economic philosophy characterized by marketplace competition and private ownership of business. The political system most frequently associated with capitalism is democracy. Capitalist countries include: The United States Japan Marketing Essentials Chapter 3, Section 3.1

Communism Communism is a social, political, and economic philosophy in which the government controls the factors of production. There is no financial incentive for people to increase their productivity because the government regulates and assigns: Employment Medical care Education Housing Food Examples of modern communist countries are: Cuba North Korea China Marketing Essentials Chapter 3, Section 3.1

Socialism Socialist countries have an increased amount of government involvement in the economy, but the market is not completely controlled. The state will generally control noncompetitive companies in areas like: Telecommunications Natural resources (gas, water, and power) Transportation Banking Modern countries with socialist elements in their economy include: Canada Germany Sweden

Economic indicators are figures used to measure economic performance. Economic indicators measure things like how much a country is producing, whether its economy is growing, and how it compares to other countries. 72

One way of telling how well an economy is performing is to determine how many goods and services it produces during a certain period of time. 73

Gross domestic product (GDP) - The total value of the goods and services produced in a country in a given year To calculate the GDP, economists compute the sum of goods and services. 74

Economists include four main areas in calculating the GDP: Consumer goods and services Business goods and services Government goods and services Goods and services sold to other countries 75

The United States produces so much more than other countries that is has a higher standard of living. The standard of living is the amount of goods and services the average citizen can buy.

+ + + = Goods and Consumer Business Govn’t services goods goods goods sold to other countries Consumer goods and services Business goods and services Govn’t goods and services Gross Domestic Product + + + = The GDP doesn’t include the goods and services that aren’t reported to the government. 77

GDP and Standard of Living Activity: You may work with one or two people to complete this activity. However each person must complete answer the open ended question on the last page! It must be handed in by the end of the block! 78

HW---Study!!!  Have a good day!!! Introduction to Business HW---Study!!!  Quiz – NEXT Class 9/27/10 or 9/28/10 Unit 1 test on Economics- 10/05/10 & 10/6/10 Have a good day!!!

Agenda 09/27/10 and 09/28/10 Discussion Do Now Study for your quiz! Discussion Unemployment Rate Inflation Activity – finish GDP activity, Inflation activity Closure: clips from The Apprentice 80

The unemployment rate measures the number of people who are able to work but don’t have a job during a given period of time. 81

There are different reasons for being unemployed, including: Temporary Seasonal Changes in industry Economic slowdown 82

Inflation is a general increase in the cost of goods and services. Inflation can happen when an economy actually becomes too productive. 83

As the demand for goods goes up, producers raise their prices. To pay the higher prices, workers demand higher wages. When wages go up, producers raise prices again to pay for the higher wages, and so on. This situation can spiral out of control and lead to hyperinflation. 84

Deflation is a general decrease in the cost of goods and services. When an economy produces more goods than people want, it has to lower prices and cut production. 85

National Debt If a nation spends less than its income, it has a budget surplus. The government will probably use a surplus to: cut taxes reduce the national debt increase spending for certain programs. When the government spends more on programs than it collects in taxes, the difference in the amount is called the budget deficit. 86

National Debt - Bureau of National Debt The total amount of money a government owes is its national debt. If the debt gets too large, a nation can become dependent on other nations or unable to borrow any more money. National Debt - Bureau of National Debt Debt Clock 87

Unemployment Rate Activity On the BLS website: http://www.bls.gov/data/ Find unemployment statistics for the following years: 1933 1944 1955 1966 1977 1988 1999 2008 Present the information in a bar graph.

Then and Now: Prices Compare Prices During the Great Depression to Prices Today

Inflation Activity Use the internet to find the current price for the following items: Bread Gallon of Milk Dozen of eggs Pound of sugar What were the prices for these items 5, 10, and 25 years ago? Display your findings in chart.

Respond to the following prompt: Closure Respond to the following prompt: How would you rate the standard of living for a country in which all the residents have adequate housing, ample food to eat, good medical care, but in which few people have expensive cars, boats, and jewelry?

Do Now 9/29 and 9/30 Do an internet search for the term “business cycle” Search first with the quotation marks and then again without them Do your results differ? Why does this happen? HW: 1. Review slides on Economic Indicators and Business Cycle ;) 2. Study for Unit test 10/5 and 10/6 Introduction to Business

How is it similar to a roller coaster? THE BUSINESS CYCLE! How is it similar to a roller coaster? Introduction to Business

AGENDA 9/29 and 9/30 Return Quiz 1 Business Cycle Discussion The Apprentice!!! (start episode 1) Introduction to Business

The Business Cycle Over long periods of time economic changes seem to form patterns. The rise and fall of economic activity over time is called the business cycle. 95

The Business Cycle The four phases of the business cycle are: Prosperity Recession Depression Recovery 96

The Business Cycle The repeated rise and fall of economic activity over time is called a business cycle. What are the four phases of the cycle? 97

Does every business cycle have all 4 stages? No. Not every business cycle has all 4 stages. Many business cycles proceed from recovery to to prosperity to recession back to recovery. (Meaning they SKIP over the depression stage). 98

Prosperity Prosperity is a peak of economic activity. Unemployment is low, production of goods and services is high, and new businesses open. 99

Recession During a recession, economic activity slows down. There is a general drop in the total production of goods and services, so the GDP declines. The ripple effect is when a recession in one industry leads to a recession in other industries. 100

Depression A deep recession that affects the entire economy and lasts for several years is called a depression. A depression can be limited to one country but usually spreads to related countries. 101

Depression During a depression there is: high unemployment low production of goods and services excess capacity in manufacturing plants. Introduction to Business

GREAT Depression The stock market crash on October 29, 1929, or “Black Tuesday,” marked the beginning of the Great Depression. During the Great Depression, the number of people out of work rose nearly 800 percent. Between 1929 and 1933 GDP fell from ~$103 billion to $55 billion (a decline of almost 50%!) At the worst time, nearly 1 in 4 workers were unemployed! average manufacturing wage was 55 cents/hr in 1929 to 5 cents/hr by 1933! every bank in the country closed for several days 103

Recovery A rise in business activity after a recession or depression is called a recovery. During a recovery: The new demand for goods and services stimulates more production The GDP grows New businesses open Production starts to increase People start going back to work and have money to spend again 104

Recovery A recovery can take a long time or it can happen quickly. During World War II, the United States recovered from the Great Depression much faster because of the demand for war production. 105

The key phases of the business cycle are expansion, peak, recession, trough, and recovery. Economic business cycles affect businesses, consumers, and governments and they in turn affect business cycles, both domestically and globally. Introduction to Business

What phase of the business cycle are we currently in? CLOSURE: What phase of the business cycle are we currently in? Introduction to Business

Source: News Article 9. 29. 10 http://www. politico “The economy has slowed significantly in the last few months.” “Until the unemployment rate improves, consumers are just not showing confidence in the recovery” “Consumers are key to that rebound, since consumer spending accounts for roughly two-thirds of economic activity. A sharp decline in consumer sentiment usually presages a decline in consumer spending” Introduction to Business

THE APPRENTICE! Season 10 : Ep. 1 “Trump introduces the return of the original Apprentice, focusing this season on offering a second chance to talented candidates who found themselves struggling when the recession hit.” Pay close attention and jot down some notes on your index card. Eventually , we will hold a class discussion in the form of a “Socratic Seminar” Take notice of each individual’s background/career history each group’s behaviors & interactions among team members problem solving techniques used to tackle the task what they did well, what were their pitfalls/difficulties Introduction to Business

Agenda 10/1 and 10/4/09 Do Now – Create a Acronym to help you remember the 4 phases of the Business Cycle: Prosperity Recession Depression Recovery REVIEW for Unit 1 test Continue with Apprentice episode 1 Closure- Did You Ever Wonder

The Business Cycle The repeated rise and fall of economic activity over time is called a business cycle. What are the four phases of the cycle? 111

Did You Ever Wonder? What were your thoughts as you watched this video? What is the author’s point of view? Do you agree or do you think this is a little extreme? Does seeing something like this motivate you take action? What could you do? Will this make you think about a “green” career?

Genuine Progress Indicator (GPI) Is a concept in green economics that has been suggested as a replacement metric for gross domestic product (GDP). Measures whether or not a country's growth, increased production of goods, and expanding services have actually resulted in the improvement of the welfare of the people in the country. Example: the GPI will be zero if the increases in dollar costs of crime and pollution equal the total dollar rise in production of goods and services, all other factors being constant. Considers whether a country's economic activity over a year has left the country with a better or worse future possibility of repeating at least the same level of economic activity in the following years. Example: agricultural activity that uses replenishing water resources, such as river runoff, will score a higher GPI than the same level of agricultural activity that drastically lowers the water table by pumping irrigation water from wells. http://dieoff.org/page11.htm

HOMEWORK CLOSURE: Questions for test? Optional: Come after school to Room D203 for extra help (let me know ahead of time if you are coming) Unit 1 test  10/5 or 10/6/10 Study for test Review your quiz PowerPoint slides Textbook website practice quizzes Introduction to Business

Do Now 10/05 10/6 Get a pencil to use for the test-you need to trade in your ID to get one Sit quietly and review your notes Clear your desk! All belongings must be on the floor!!!

Filling Out The Scantron… NAME : You know this ) SUBJECT: Unit 1 Test Date: 10/5 or 10/6 Period: put your block, 1a 2a or 3b For true/false questions: TRUE=A FALSE=B

When You Are Done With the Test…. NO TALKING UNTIL ALL TESTS ARE COLLECTED!!!  http://missmcgrath.wikispaces.com/ Follow the link to 21st Century Business ->Unit 2 ->Young Millionaires Pick one Entrepreneur to read about; visit their company website Be prepared to share what you discovered with the class

Continue The Apprentice “Socratic Seminar” Introduction to Business

Activity - What happens during each phase of the business cycle? As a class we will divide into 2 groups Each group will appoint a “project manager”, You will work with your group to create a descriptive business cycle poster. Include at least 6 facts that occur during each phase – use pictures to describe the events  119

On-line Activity “If You're So Smart, Why Aren't You Rich?” http://www.econedlink.org/lessons/index. php?lesson=NN130 Introduction to Business

Video: Warren Buffet: The Ultimate Entrepreneur