Economics Supply and Demand

Agenda If not done: Collect Gov. handout Econ Books If not done: Collect Gov. handout Econ Books Homework: Read pages 26-47, answer questions 2.1, 2.2, 2.4. Homework: Read pages 26-47, answer questions 2.1, 2.2, 2.4. Americans Thrifty Ways Article Americans Thrifty Ways Article Political Cartoon Political Cartoon Supply and Demand Supply and Demand How Supply and Demand Impacts goods we buy! How Supply and Demand Impacts goods we buy! Time for hwk and Project Time for hwk and Project Review Review Objective: Describe the relationship between supply and demand. Objective: Describe the relationship between supply and demand.

Supply and Demand Definitions Scarcity: Scarcity: Goods are insufficient to satisfy people’s wants. Goods are insufficient to satisfy people’s wants. Production: Production: Conversion of resources into products that can be consumed. Conversion of resources into products that can be consumed. Goods: Goods: All things people derive satisfaction from. All things people derive satisfaction from. Services: Services: Mental or physical labor purchased by consumers. Mental or physical labor purchased by consumers. Opportunity Cost: Opportunity Cost: Something sacrificed to obtain something. Something sacrificed to obtain something.

Goods Vs Economic Goods Goods All things you derive happiness From. Similar Economic Goods is a Subset Of Goods Economic Goods Goods derived from scarce resources, Almost every example is an econ-good, and services.

Scarcity, Choice, Opportunity Cost Scarcity Because of limited resources choices have too be made! Choice With every choice in picking one good over another an individual sacrifices something. Opportunity Cost Is the cost for obtaining another good that is desired

Questions What are wants and needs? What are wants and needs? -Wants is an individual’s desires. -Wants is an individual’s desires. -Needs are different for each person, what you need to survive. -Needs are different for each person, what you need to survive. What is trade-offs? What is trade-offs? To trade one resource for another. To trade one resource for another. How do you make a PPC? How do you make a PPC? PPC - shows the maximum amount of goods and services that can be produced, for a given level of technology and resources. PPC - shows the maximum amount of goods and services that can be produced, for a given level of technology and resources.

Review What is scarcity? What is scarcity? What is Opportunity Cost? What is Opportunity Cost? What is a want and need? What is a want and need? How do make a PPC? How do make a PPC?

Economics Supply and Demand

Agenda Homework: Article on Credit and summary. Homework: Article on Credit and summary. Check hwk/Review Check hwk/Review Article/Cartoons on Bankruptcy Article/Cartoons on Bankruptcy Now Statement Now Statement Credit Web Quest. Credit Web Quest. Projects Projects Review Review Objective: To evaluate the uses of credit. Objective: To evaluate the uses of credit.

Now Statement How does credit play a role in your life today? Give examples ! How does credit play a role in your life today? Give examples !

Review What is credit? What is credit? What is in a credit report? What is in a credit report? Why do people want good credit? Why do people want good credit? How do you make a PPC? How do you make a PPC?

Economics Credit, and Supply and Demand

Agenda Homework: None. Homework: None. Check and Review Credit Article Check and Review Credit Article Supply and Demand, Banking, and Labor Unions (Notes and Handout) Supply and Demand, Banking, and Labor Unions (Notes and Handout) If Time: Projects If Time: Projects Review Review Objective: To evaluate the uses of Banking, Labor Unions, and to describe the role of demand in the economy. Objective: To evaluate the uses of Banking, Labor Unions, and to describe the role of demand in the economy.

The law of demand: The law of demand: There is a negative, or inverse, relationship between the price of any good or service and the quantity demanded. There is a negative, or inverse, relationship between the price of any good or service and the quantity demanded. Relative price: Relative price: The price of one commodity divided by the price of another commodity. The price of one commodity divided by the price of another commodity. Demand Curve: Demand Curve: A graph of the demand schedule. A negatively sloped line showing the relationship of price and quantity. A graph of the demand schedule. A negatively sloped line showing the relationship of price and quantity.

Supply: Supply: Shows relationship between price and quantity supplied of a good. Shows relationship between price and quantity supplied of a good. Law of Supply: Law of Supply: The higher price of a good the more businesses will increase their production of it. The higher price of a good the more businesses will increase their production of it. Supply Curve: Supply Curve: Graphic representation of a supply curve. Line showing the supply schedule, which generally slopes upward. Graphic representation of a supply curve. Line showing the supply schedule, which generally slopes upward.

Equilibrium: Equilibrium: Situation where quantity supplied meets the quantity demanded. Situation where quantity supplied meets the quantity demanded. Turn to page 73 of your book and answer question 3-1 and find the equilibrium of the amount demanded and supplied. Turn to page 73 of your book and answer question 3-1 and find the equilibrium of the amount demanded and supplied.

Banking How does banking differ from nation to nation? How does banking differ from nation to nation? Some nations they are crucial in the economy, while in others it is not. Some nations they are crucial in the economy, while in others it is not. Duties of the Central Bank: Duties of the Central Bank: Functions for the national gov, services to private banks, and monetary policies. Functions for the national gov, services to private banks, and monetary policies. What are the parts of the Fed Reserve System: What are the parts of the Fed Reserve System: Board of Gov-set monetary policy, oversee Fed Banks; Fed Reserve Banks-furnish currency, handle national debt; Fed Open Market Committee-Directs buying and selling of US assets. Board of Gov-set monetary policy, oversee Fed Banks; Fed Reserve Banks-furnish currency, handle national debt; Fed Open Market Committee-Directs buying and selling of US assets.

Labor Unions Labor Unions: Labor Unions: Worker organizations that seek economic improvements for employees. Worker organizations that seek economic improvements for employees. Goals of Unions: Goals of Unions: Wage rate, rationing of jobs, improve working conditions. Wage rate, rationing of jobs, improve working conditions. Strategies: Strategies: Limiting Entry, etc. Limiting Entry, etc. Benefits Vs Disadvantages: Benefits Vs Disadvantages: Benefits-voice for workers, wages equal, etc.; Disadvantages-profits go down, not necessary the best person for the job, etc. Benefits-voice for workers, wages equal, etc.; Disadvantages-profits go down, not necessary the best person for the job, etc.

Review What does the Law of demand say? What does the Law of demand say? What does the Law of supply say? What does the Law of supply say? What is in the Federal Reserve System? What is in the Federal Reserve System? What are Labor Unions? What are Labor Unions?

Economics Credit, and Supply and Demand

Agenda Review Supply and Demand Chart Review Supply and Demand Chart Handout on Monetary Policy, Fiscal Policy, and Taxes Handout on Monetary Policy, Fiscal Policy, and Taxes Ten Principles of Economics Click Here Ten Principles of Economics Click HereClick HereClick Here If Time: Work on Mock Election Projects If Time: Work on Mock Election Projects Review Review Hwk: Quiz tomorrow (not online) /Project due Monday by the end of class. Hwk: Quiz tomorrow (not online) /Project due Monday by the end of class.

Monetary Policy Transaction Demand: Transaction Demand: Holding money to use in transactions. Holding money to use in transactions. Precautionary Demand: Precautionary Demand: Holding money to meet unplanned expenditures. Holding money to meet unplanned expenditures. Asset Demand: Asset Demand: Holding Money as a store of value. Holding Money as a store of value. Negative aspect of Holding $? Negative aspect of Holding $? Value decreases! Value decreases!

Monetary Policy Open Market Operations 1.If fed Increases the # of bonds then supply of $ increases. Discount Rate 1.Fed increases rate of banks that borrow money from it, then they are Less likely to Borrow. Reserve Requirements 1.Fed increase reserve require. then less $ in circulation.

Taxes Taxes: Taxes: Payments to the government. Payments to the government. Payroll Taxes: Payroll Taxes: Provide essential funding for programs. Provide essential funding for programs. Three options: Three options: Raising Taxes, Wage Cap, Cutting Benefits. Raising Taxes, Wage Cap, Cutting Benefits. Which is the best choice? Which is the best choice?

Fiscal Policy Fiscal Policy: Fiscal Policy: Changes in governmental expenditures to positively impact the government. Changes in governmental expenditures to positively impact the government. Direct Expenditure Offsets: Direct Expenditure Offsets: Actions taken by the private sector to offset government spending. Actions taken by the private sector to offset government spending. Supply-side Economics: Supply-side Economics: Creating incentives for individuals and firms to increase production. Creating incentives for individuals and firms to increase production.

Review What are negative aspects of holding money? What are negative aspects of holding money? How is monetary policy determined? How is monetary policy determined? What are the three options for paying for governmental expenditures? What are the three options for paying for governmental expenditures? What is supply-side economics? What is supply-side economics?

Agenda Homework: None. Homework: None. Study for Quiz-Look over Econ Notes/worksheets-terms (Labor Unions, Law of Supply, Law of Demand, Credit, Fiscal Policy, etc.) Study for Quiz-Look over Econ Notes/worksheets-terms (Labor Unions, Law of Supply, Law of Demand, Credit, Fiscal Policy, etc.) Quiz Quiz After Quiz finish project After Quiz finish project Note cards-name handed in Monday Note cards-name handed in Monday PPT on Summer-Drive needs to be done PPT on Summer-Drive needs to be done

Agenda Homework: None. Homework: None. Check Projects/Collect Note- Cards Check Projects/Collect Note- Cards Review Quiz Review Quiz Investment Options Article Investment Options Article Presidents of the US Presidents of the US Electoral College Electoral College If Time: Mock Election If Time: Mock Election

Agenda Homework: None. Homework: None. The Political Parties of America Web- quest The Political Parties of America Web- quest Use computers to fill out information Use computers to fill out information Take Test Take Test Review Click Here Review Click HereClick HereClick Here Parties and Issues Parties and Issues If Time: Mock Election If Time: Mock Election Review Review

Agenda Homework: Final Tomorrow take folders Homework: Final Tomorrow take folders Mock Election Mock Election Final Review Game Click Here Final Review Game Click HereClick HereClick Here If Time: You Be the Judge If Time: You Be the Judge Review Review

Agenda Winner of Mock Election? Winner of Mock Election? Study for Exam Study for Exam Final Exam Final Exam After Exam read: After Exam read: Supreme Court Article/Summary Supreme Court Article/Summary You Be the Judge You Be the Judge Review Review