1. 9/8
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2. What is Economics?
Economics- production, distribution, and use of goods and services
The study of how people meet their needs

3. 3 Types of Economic Systems
1) Market 2) Command 3) Traditional

4. Market Economy
Decisions made by individuals (what to make, sell and buy) supply and demand
Also called capitalism
Based on trade and competition
Some government regulation (laws, taxes)
USA, Great Britain, Canada, France, and Japan have a market economy

5. Command Economy Government makes decisions No incentive to work harder
Also known as communism
No incentive to work harder
Dictates lives of individual workers
Manages all elements of production
China, Cuba, Vietnam, and North Korea are the world’s major communist countries

6. Traditional Economy based on agriculture
Most families in a traditional economy only grow enough for themselves
Traditional economies are usually poor. The people concentrate on survival, not making money
Usually found in 3rd world countries
Bangladesh and Ivory Coast still have traditional economies

7. GNP
GNP (Gross National Product)- The value of all goods and services a country produces in one year
Rank
Country/Region
GNP (US $)
 World
72,689,734,000,000 1
 United States
16,244,600,000,000 2
 China
8,358,400,000,000 3
 Japan
5,960,180,000,000 4
 Germany
3,425,956,000,000 5
 France
2,611,221,000,000 6
 United Kingdom
2,471,600,000,000 7
 Brazil
2,254,109,000,000 8
 Russia
2,029,812,000,000 9
 Italy
2,013,392,000,000 10
 India
1,875,213,000,000

8. GDP
GDP (Gross Domestic Product)- How much each individual produces within a year
GNP divided by the population = GDP
Rank
Country
US $ 1
 Qatar
98,814 2
 Luxembourg
78,670 3
 Singapore
64,584 4
 Norway
54,947 5
 Brunei
53,431 6
 United States
53,101 —
 Hong Kong
52,722 7
  Switzerland
46,430 8
 San Marino[6][7]
44,480 9
 Canada
43,472 10
 Australia
43,073

9. Supply and Demand
We use Supply and Demand to determine how much goods will cost
The more of something you have, the less valuable it becomes
BrainPop: Supply & Demand

10. What are those?!?!?!?! Jordan 11 Infared’s average price is $150
Low supply (not many are made)
High quality materials
People are willing to pay a high price for them (high demand)
Wal-Mart basic shoes are about $15
Large supply (a lot are made)
People go to Wal-Mart to save money

11. Cultural Diffusion The spread of cultural characteristics
Foods, music, clothing, ideas, technology

12. Think!
How can the presence or absence of natural resources and arable land affect a nation’s economy, regardless of the type of economic system?