1. SS6E1/SS6E5/SS6E8 The student will analyze different economic systems. SS6E2/SS6E9 The student will analyze the benefits and barriers to voluntary trade. SS6E3/SS6E7/SS6E10 The student will describe factors that cause economic growth. SS6E4 The student will explain personal money management choices in terms of income, spending, saving, credit and investing.

2.  Compare how traditional, command, and market economies answer the economic questions of (1) what to produce, (2) how to produce, and (3) for whom to produce.  Explain how most countries have a mixed economy located on a continuum between pure market and pure command.  Explain how specialization encourages trade between countries.  Compare and contrast different types of trade barriers, such as tariffs, quotas, and embargos  Explain the relationship between investment in human capital (education and training) and gross domestic product (GDP).  Explain the relationship between investment in capital (factories, machinery, and technology) and gross domestic product (GDP).  Explain the role of natural resources in a country’s economy.  Describe the role of entrepreneurship.

3.  Location: The student will understand that location affects a society’s economy, culture, and development.  Production, Distribution, Consumption: The student will understand that the production, distribution, and consumption of goods/services produced by the society are affected by the location, customs, beliefs, and laws of the society.

4.  Every society, whether a country, state, city, town, has an economic system.  An economic system is how a society organizes the production, consumption and distribution of goods and services.  Consumption - The using up of goods and services by consumer purchasing or in the production of other goods.  Distribution - The process of marketing and supplying goods, especially to retailers and market economics, but falls closer to one form or the other.  Production - The creation or manufacture for sale of goods and services with exchange value.

5.  There are three main types of economic systems  Traditional - An economy in which customs and habits of the past decide what and how goods are produced, distributed and consumed.  Found mostly in societies that are based on farming  People produce enough goods to survive ▪ Either by farming, gathering or hunting  Make their own clothes and tools  Anything extra is usually traded  Command - An economy in which centralized planning groups decide what and how goods and services will be produced, distributed and consumed.  Government controls what is produced, how things are produced  Government has all the resources and dictates what is to be made and who gets the product ▪ Decisions made on wealth, class status or by position in a waiting line  Market - An economy in which changes in price guide what and how goods and services will be produced, distributed and consumed.  Based on what the consumers of the country want to buy and sell  Supply and demand determines what is produced and how it is produced  People may own their own businesses  Who gets a product determines how much they can afford to buy it

6. NORTH KOREA PAKISTAN UNITED STATES OF AMERICA

7.  Definition - An economy that blends characteristics of both command and market economics, but falls closer to one form or the other.  Most countries in the world have a mixed economy  Because of growing populations, citizens acquiring more rights, the addition of resources and government changes, countries have moved towards mixed economies  Examples of countries with mixed economies  United States  England  France  South Africa

8.  Definition – The division of labor; work is divided into parts for workers, factories, or countries to become experts on producing certain goods.  Helps people and companies use resources more efficiently  Allows for increased production and consumption of goods and services

9.  Tariffs  Taxes on imported goods  Quotas  A limit placed on the number of imports that may enter a country  Embargos  A government order stopping trade with another country to put pressure on the government of that other country

10.  Human Capital  Definition - Workers of a business or country including their education, training, skills and health  Factors include training and education  Capital  Definition - Wealth available for or capable of use in the production of further wealth  Factors include factories, technology and machines  Gross Domestic Product (GDP)  Definition - The total value of all goods and services produced in a country in one year  Used by economists to determine how healthy or unhealthy a country is

11.  The relationship between human capital and GDP is if a country has good source of human capital, the GDP tends to be higher  The relationship between capital and GDP is the more capital in a country, the healthier the country is in the long term

12.  A natural resource is something that is found in nature that is necessary or useful to humans  Natural resources allow for goods and services to be produced.  Examples of natural resources:  Oil  Petroleum  Lumber  Diamonds  Water  Fruits and Vegetables  Iron  Aluminum  Natural Gas  Gold  Platinum

13.  An entrepreneur is one who risks his or her own money, time, ideas, and energy to start and run a business.  Entrepreneurs know of the risks before the product is produced  Entrepreneurs help the economy to grow based on borrowing funds, use capital and human capital and natural resources

14.  Money management deals with the choices you make in your life in terms of what you are doing with your money.  Money is the medium of exchange used for goods and services

15.  INCOME  Definition – Money coming in to a person or into a business  Can come from various forms ▪ Salary, Borrowing, Finding it, Investments  SAVING  Definition – Income not spent  SPENDING  Definition – To pay out or expend money  INVESTING  Definition - Putting money into a bank account, stock, bond, or mutual fund that pays interest.  This allows your money to be saved

16.  Credit is an arrangement for deferred payment of a loan or purchase.  You must pay back the amount borrowed, plus interest  The money for credit is supplied by a bank or a credit company

17. TYPES OF MONEY  Coins  Paper Bills  Checks  Debit Cards TYPES OF CREDIT  Credit Cards  Bank Loans

19.  Saving allows you to have money aside for emergencies as well as having money for future use  There are many different ways to save  Hands on saving ▪ Putting money in a shoebox, jar, etc  Savings accounts ▪ Usually with your bank  Retirement accounts ▪ Usually with your job  401K or CD plans ▪ Usually with your bank