1. EQ: How do people get the things they want and need?
Economics HG 28
EQ: How do people get the things they want and need?

2. Wants and Needs
All human beings have wants and needs. How do you get the things you want and the things you need? Resources are the supplies that are used to meet our wants and needs.
Natural Resources are provided by the planet. water, trees, animals, oil, air, etc.
Human Resources are provided by people. Labor, skills, talents, etc.
Countries require resources to meet their needs.

3. Supply – How much you have. Supply is limited.
Demand – How many people want it. Demand is unlimited.
This pitcher of lemonade has 12 glasses.
What do we do now?

4. If the people of all nations have unlimited wants but face limited resources, what must happen? HG 29
Jot Thoughts, all Write Round Robbin . . .

5. Energy HG30
The power to do work. Energy resources are the supplies that provide the power to do work. Energy resources can be renewable or nonrenewable.
Renewable Resources – a resource that can be totally replaced or regenerated.
Water, Trees, Wind Energy, Sun Energy
Nonrenewable Resources – cannot be replaced once consumed, they are gone.
Fossil Fuels – they formed millions of years ago. Oil, Natural Gas, Coal.

6. Do we continue to use nonrenewable resources
Do we continue to use nonrenewable resources? If so, at what rate should we be using them? Should we switch to renewable resources? HG 31
Compare/Contrast Venn Diagram Create a venn diagram comparing and contrasting renewable resources to nonrenewable resources.

8. Economic Systems HG32
What types of economic systems are used in our world today? Economic Resources: goods and services a society provides and how they are produced, distributed, and used.
Economic System: how a society decides on the ownership and distribution of its economic resources.
They ask three basic questions:
What should be produced?
How should it be produced?
How should the product be distributed?

9. Scarcity Choices What to Produce How to Produce For Whom to Produce
Unlimited
Wants
Limited
Resources
Scarcity
Choices
What to Produce
How to Produce
For Whom to Produce

11. Socialism HG33
In a socialist society, the society controls all aspects of the economy through the government.
The government, rather than private owners, make business plans.
The government decides:
What items will be produced.
What jobs workers will have.
Socialists plan for a nation’s wealth to be more evenly divided among its citizens, but this often doesn’t happen in reality.

13. Communism HG 34
Communism is a more extreme form of socialism. In an ideal communist society, communism calls for a society in which all are equal and no government is needed. In reality, one political group, namely the communist party, controls the government, society, and the economy. Communism is a command economy. The means of production are publically owned, and production and distribution are controlled by a central governing unit.

15. Free Trade HG 35
A healthy free enterprise system is based on ethics, or moral principals of right and wrong, that support individual liberty and economic freedom.
Individuals/groups decide what to produce
Shoppers decide what to buy
Businesses produce and stock what they think shoppers will want
Individuals/groups own property or businesses
Profits made with only limited regulation by the government.
Benefits of this form of economy:
People are free to choose their jobs.
People can make and spend money as they see fit.
Businesses provide a wide range of goods and services for consumers.

16. Mixed Economies HG36
A government supports and regulates free enterprise through decisions that affect the overall economy. Most world economies are mixed in some way.

18. Parts of the Economy
Land – a factor in production and natural resources
Labor – all paid workers within a system
Capital – the human made resources used to produce other goods.
Entrepreneurs – the people who bring together natural resources, labor, and capital to create a business.
Industry – a branch of business.
For example:
Agriculture – grows crops and raises animals.
Manufacturing – uses technology to produce a variety of finished products.
Service – provides services rather than goods. Banking and restaurants.

19. Wholesale and Retail HG37
Wholesalers
Few goods are sold directly to consumers. Whole sale and retail business usually distribute goods.
Wholesalers – generally buy large quantities of products from manufacturers and sell them to retail stores.
Retail Stores – sells items directly to the consumers.
Retail Stores

20. Types of Economic Activities HG38
Primary Sector
Primary Sector – activities that produce raw materials and basic goods. Lumberjacks, farmers.
Secondary Sector – make finished goods. Construction and automobile manufacturing are examples.
Tertiary Sector – Service Industry. Sales and Healthcare are examples.
Secondary Sector
Tertiary Sector

21. Economic Performance HG39
IS How well an economy meets the needs of society. Several factors are used to measure economic success.
Gross Domestic Product (GDP) the total dollar value of all final goods and services produced in a country during a single year.
GDP per Capita – the total national output divided by the number of people in a nation.
Standard of Living – the level at which a person, a group, or a nation lives as measured by the extent to which people’s needs are met. These needs include food, shelter, clothing, education, and health care.
Productivity – a measurement of what is produced and what is required to produce it.

22. Economic Performance 2 HG40
Sustainable Growth – the growth rate a business can maintain without having to borrow money.
Employment Rate – the percentage of the labor force that is employed.

23. Types of National Economies
Developed Countries – are industrialized and have a strong economy
Developing Countries – are less industrialized. The have weaker economies where a part of the economy live in poverty.
Agricultural Countries – are working to become more advanced economically. Most of their population lives in poverty. They have weak economies.
Newly Industrialized Countries or NICs are in the process of becoming developed and economically secure.

24. EQ: How do the world’s economies interact and affect one another? HG41
All nations of the world must find a way to interact with one another.
Trade the business of buying, selling, or bartering for goods and services.
Countries have different resources. Therefore, goods and services can be produced in some countries for far less than in others.
Trade benefits countries:
Export – send to another country
Import – buys from another country
Tariff – a tax placed by a country on anything that is imported. Governments often create tariffs to persuade their people to buy products made in their own country.

25. HG 42 Quotas – a limit placed on the amount of one particular good that can be imported. Quotas prevent countries from exporting goods at much lower prices than the domestic (local) market can sell them for.
When little or no regulation is set between countries, we call this free trade.
The advantages and disadvantages of trade. Advantages – builds economic growth and increases a countries income. Disadvantages – loss of jobs, and increases in tariffs and taxes that interfere with business.

26. Economic globalization takes place when businesses move past national markets and begin to trade with other nations around the world.

27. Economic Organizations HG43
(IMF) International Monetary Fund – a group that monitors economic development, lends money to countries in need and provides training and technical support (help).
(NAFTA) North American Free Trade Agreement – encourages trade between the US, Canada, and Mexico.
(WTO) World Trade Organizations – helps regulate trade among nations.
World Bank – provides financing, advice, and research to developing nations to help them grow their economies.

28. Currency – Money HG 44
Whether a nation produces its own goods or trades, one basic principle is considered: sustainability.
Sustainability – creating conditions where all the natural resources for meeting the needs of a society are available.