1. Brain Jogger How do people get what they need to live?
Give three bullet points:

2. Intro to Economics

3. Economics Economics- The study of how people get what they want.
Production- how things are made
Distribution- how you get the items
Consumption- using the items
Natural Resources-gift of nature

4. SCARECITY
There is an unlimited amount of need, but a limited amount of resources.

5. Currency- Examples
U.S.-Dollar
Mexico-Peso
European Union- Euro

6. Brain Jogger Scarcity ___ A. using a product or service
Instructions: Get out a half sheet of paper and number to 8. Match the definitions with the correct definition.
Brain Jogger G
Scarcity ___ A. using a product or service
Production ___ B. The study of how people get
Economics ___ what they want and need.
Consumption ___ C. Gifts of Nature
Distribution ___ D. A person who decides to buy or
Natural Resources ___ use a good or service.
Consumer ___ E. Getting items to consumers
Currency ___ F. Money
G. Unlimited Needs, Limited
resources
H. Making a Product to sell or trade H B A E C D F
Please put how many they got right over 8.
Ex: they miss 2 would look like 6/8

7. Wrong Answers
Grade 1 88 2 75 3 62 4 50 5 38 6 25 7 12 8

8. Economic Systems

9. Economic Systems
WHAT TO PRODUCE? (What kinds of goods and services should be produced?)
HOW TO PRODUCE? (What productive resources are used to produce goods and services?)
FOR WHOM TO PRODUCE? (Who gets to have the goods and services?

10. Three Types of Economic Systems:
1. Traditional Economy
2. Command Economy
3. Market Economy
* Most countries are… Mixed Economies! (Market + Command)

11. Market Economy Is an economy system managed by the people.
Based on supply and demand.
Doritos has increased sales!!! Because people can’t resist them!!!
Doritos increases their prices!!! Until.. People do not buy as many Doritos
I love Doritos!!! And so does everyone else!!!

12. Market Economy Who decides what to produce?
Businesses base decisions on supply and demand and free enterprise (PRICE)
Who decides how to produce goods and services?
Businesses decide how to produce goods
Who are the goods and services produced for?
consumers

13. Market Economy
There are no truly pure Market economies, but the United States is close.

14. Market Think, Pair, Share Pros Cons
People get more choices and they get to have a say.
Govt. does not tell you what to do.
Govt. does not get to protect the consumer.
Greed can control business decisions.

15. 4 minutes (two sentences)
Brain Jogger
Which would you rather live in? A Pure Command or a Pure Market economy. Why?
4 minutes (two sentences)

16. Command Economy The government controls the economy
What goods and services are sold, produced.
What jobs people can have.

17. Command Economy Who decides what to produce?
Government makes all economic decisions
Who decides how to produce goods and services?
Government decides how to make goods/services
Who are the goods and services produced for?
Whoever the government decides to give them to

18. Command System
Countries with communist governments have Command economies
Examples: There are no truly pure command economic systems, but close countries are: North Korea, former Soviet Union, Cuba
*Germany and Russia have moved away from having a Command economy since Now they have a Mixed economy.

21. Think, Pair, Share Command Pros Cons
Government inspected product/service
More people might receive services
People have jobs
Govt. does not have competition
Product usually have poor quality
Not what the consumer wants

22. Traditional Economy
Economy based on traditions, routines, and beliefs.
The product is usually sold in a market

23. Traditional Economy Who decides what to produce?
People follow their customs and make what their ancestors made (Look to the PAST)
Who decides how to produce goods & services?
People grow & make things the same way that their ancestors did (Look to the PAST)
Who are the goods & services produced for?
People in the village who need them

24. Traditional Economy Examples: Villages in Africa and South America
the Inuit tribes in Canada
the caste system in parts of rural India
the Aborigines in Australia

25. Think, Pair, Share Traditional Pros Cons
You know what you will do the rest of your life
Limited resources/tech.
Limited selection
You know what you will do the rest of your life
You can Barter for goods/services
Products are of good quality.

26. Economic Systems Market Command Traditional
….But No Country has a 100% Market, Command, or Traditional Economy
So……What do they have?

27. Economy Continuum Mixed Economy Pure Command Economy
Pure Market Economy

28. Mixed Economy
It is a mixture of state and private ownership and control.
Every economy is mixed.
The post office is run by the governement!
Farmers Markets are run by the people.
Railways can be run by the government.

29. Mixed Economy Who decides what to produce?
Businesses AND the government decide what to produce
Who decides how to produce goods & services?
Businesses AND the government
Who are the goods & services produced for?
Consumers

30. Brain Jogger Traditional A. Controlled by the Govt.
Command B. Controlled by the past.
Market C. Mixture of private and govt. control.
Mixed D. Controlled by the people

31. Economy Continuum Command Market Russia 50.5% North Korea 1% Cuba
27.7%
Germany 71.8%
U.S.
77.8%
U.K.
74.5%
Australia
82.5%
North Korea
Australia
U.S.
Germany
Russia
Cuba
U.K.

32. Guess that Economy I will give you an example of a country’s economy.
You need to tell me what type of economic system they have.

33. Example # 1
If my father and mother make baskets in a small village in Yemen and they are training me to take over their business when they die, what type of economic system is being described?

34. Example # 2
McDonalds comes out with a new type fries made out of asparagus. After a couple months, McDonalds sees that none of their customers are buying the new fries, so they stop selling them. This is an example of ________.

35. Example # 3
The government of Saudi Arabia tells it citizens that they can only buy their government made tires, and no other country's or company's tires. This is an example of ________.

36. Example #4
The USA, for the most part, lets people make the economic decisions in the country, but the government does step in to make sure that citizens are not taken advantage of by other people or companies. This is an example of ________.

37. Activity
Take the assigned economy and answer the following questions and charts:
Questions
Answers
Impacts
What type of economy do you have?
What is your country’s name?
Where is your country located?
What type of businesses do you have?
Who makes most of the important economic decisions in your country?
Complications with your economy:

38. Brain Jogger
Why is a Mixed Economy not considered an economic system like command, market, and traditional economies?
Two sentences please.

39. GDP
GDP or Gross Domestic Product is the sum of goods and services produced in an economy during a period of time (usually a year).
The Gross Domestic Product measures the value of economic activity within a country.
GDP

40. Investment in Human Capital
(education and training)
By investing in human capital, you increase production, improve company, increase GDP.

41. Investment in capital (factories, machinery, and technology)
By investing in capital, you increase production, improve company, increase GDP.

42. Entrepreneur
One who innovates and takes risks in developing a product or business.

43. Natural Resources Affect Growth
If a country has a lot of resources, great! It will help their economy.
But they must also invest in other things too!!!
Climate also affects growth. (Drought does not help things)
Nigeria has a lot of oil, but did not invest in farming.

44. Hard for companies to Invest in Africa
Why?
Unstable governments and corruption.
Weak work force
13% of South Africans are HIV positive (AIDS)
Poor work conditions
You’re not getting my money!!