1. Business and Investment

2. 1. Which choice best identifies the similarity between mass production and automation? –Both automation and mass production use technology and machinery –Both automation and mass production use blue collar workers –Both automation and mass production use unskilled workers –Both automation and mass production always use robotics 2. Which is the best example of a white collar job? a. Making fancy lattes and coffee drinksb. Temporary office work c. Working as a cashier at the mall d. Managing the local copy shop 3. Imagine you have a bowl of chocolate ice cream. Your first bowl tastes incredible. Your second bowl tastes good. The third makes you full. The fourth bowl makes you sick? What property is this an example of? *** 4. If you were starting a new business, and you had a hammer, what factor of production would it be considered? 5. What clause of the Constitution states that all states need to respect the rules of other states? 6. Which amendment gave women’s suffrage? a. 12 th b. 18 th c. 19 th d. 22 nd

3. What will happen to a company if they add too many factors of production (land, labor, capital, entrepreneurs)? What is this known as? EX: Subway, if subway had too many workers they would get in each other’s way and would not be able to produce as many sandwiches as they could if they had fewer workers

4. WARM-UP: If you could start a business would you work on your own or with a partner? Why?

5. Sole Proprietorships Business owned and operated by ONE person. Anyone can start one. PROS: make all the profit & helped out by the government (Small Business Administration) CONS: –unlimited liability—responsible for all debts. –Must raise all initial capital (human, physical and financial) –Limited Life: Business dies when owner does

6. Partnerships A partnership is a business owned by 2 or more people. PROS: –Share the burden of debt and capital. –Raise $$ by adding partners –No corporate income tax CONS: –each partner has unlimited liability

7. Corporations A business formed by filing a charter with the gov’t. Stockholders who buy shares, or stocks, OWN the corporation. –Board of Directors is hired to run the business PROS: – Raise money easily through selling stock to shareholders –Limited liability (only liable for your investment) –Unlimited life CONS: –Gov’t regulation and might have to pay corporate tax –Owners have little say in management of corporation

8. Franchises Businesses when individual people buy the rights to manage or run a large company’s store. –Example: McDonalds is a massive, multi-national company. But the local McDonalds in Scotland Neck is franchised to an individual owner. PROS: ?? CONS: ??

9. Words to Know for Businesses LIABILITY: What is risked if something goes wrong in a business.

10. Words to Know for Businesses STOCK: A partial ownership in a company.

11. Words to Know for Businesses DIVIDENDS: The money shareholders get when a company makes a profit.

12. Investment-Spend $$ to make More $$ What you can invest in and how you can invest your money INVESTMENT IS A WAY TO USE RESOURCES THAT COULD BE USED FOR IMMEDIATE BENEFIT FOR A GREATER BENEFIT AT A LATER TIME. Types of Investment Human Capital –the people—through pay, benefits, education and training to increase productivity!

13. Investment-Spend $$ to make More $$ What you can invest in and how you can invest your money Types of Investment Physical Capital –Machinery, Technology, buildings, tools

14. Investment-Spend $$ to make More $$ What you can invest in and how you can invest your money Types of Investment Natural resources –Land (renewable & nonrenewable resources)

15. Investment-Spend $$ to make More $$ What you can invest in and how you can invest your money Types of Investment Financial Capital- MAKE MY $$$ GROW!!! –Stock

16. Investment-Spend $$ to make More $$ What you can invest in and how you can invest your money Types of Investment Venture Capital –Investment in a NEW business

17. OVERALL: Investment seeks to increase productivity by increasing inputs. EX: I invest in machinery (input) and I get more cars (output)

18. Create a Business! 1.Name Business 2.State the major good or service you will be producing. 3.State the TYPE of Business (corporation, sole proprietorship, partnership)? 4.Identify your fixed costs 5.What investments will you make to get started? Human Capital (how many workers, what types of jobs, skilled or unskilled workers?) Financial Capital Physical Capital 6.Create Advertisement for product or business card on the back. I AM COLLECTING THIS AT THE END OF CLASS FOR A GRADE.

19. DO NOW: WEEK 14 MONDAY 1.What are the 4 factors of production? 2.Give an example of a capital good 3.Give an example of a non-renewable resource. TUESDAY 1.What must businesses purchase in order to create goods/services? 2.What are the 3 economic questions? WEDNESDAY 1.What is an opportunity cost of going to college? 2.How does business figure out its total costs? THURSDAY 1.What is it called when a worker is assigned specific tasks to complete during production? 2.What is responsible for mass producing food? FRIDAY 1.What type of business is owned by stockholders? 2.Which business does one person have unlimited liability? 3.What type of business doesn’t make any profit?

20. Types of Economies CE Notes 77-78 NC 7.06

21. RAP 77 Agree or Disagree? 1.The government should own all businesses. 2.The government should regulate business. 3.Business should be owned by private individuals. 4.You should do the same job your parents did. 5.Technology should be used to increase production. 6.You should be paid based on your level of skills. 7.You should be paid based on your contribution to production. 8.All workers should be paid equally. 9.The government should never tell business what to do. 10.The government should decide what businesses should make. 11.Businesses should produce according to what the consumers want. 12.The government should decide what the best way to produce goods and services is. 13.Businesses should compete to find the best way to produce the most goods and services.

22. Market Economy -production and exchange is regulated by competition between individuals and businesses. 1.People have the right to own private property 2.People work from self-interest –Businesses produce goods for profits = Profit Motive 3.Everyone’s needs will be met b/c producers will make the most profit by making what consumers want. Nicknames: Laissez-Faire “hands off,” Capitalist Economy, Free Enterprise System, Invisible Hand Competition answers the 3 economic questions (what, how, whom)

23. Command Economy: All businesses are owned & operated by the government for the benefit of all citizens. –People are paid equally even though they do different jobs. Nicknames: Communism, Marxism, planned economy Government answers the three economic questions

24. Traditional Economy: things are done “the way they have always been done.” –Ex: you farm the same way your great- great grandfather farmed. –Little new technology. –Jobs determined based on custom. Custom & Habit determines the answers to the three basic economic questions.

25. PIT 77- Economic Scenarios 3 Scenarios (10 min each) Groups of 4-5 people. All must complete ALL scenarios. Designate one person to obtain materials.

26. The Specs – to be paid your products must meet these standards –Necklaces  $10.00 String the length of your forearm 10 Beads in the following order –2 yellow –2 blue –2 green –Bracelets  $5.00 6 inch piece of string 8 Beads in the following order –2 yellow –2 green –2 blue

27. Minute Paper With your group… Write a paragraph about what we learned today about the types of economies. It does not have to be a good paragraph but each person must add a sentence.