1. What is the difference between needs and wants?
Daily Writing Prompt
What is the difference between needs and wants?

2. I have 10 tacos. More people in here want these tacos than can have them. How can we decide who will get tacos?

3. Three Key Economic Questions
Because resources are scarce, each society must answer three economic questions:
What goods and services should be produced?
How should these goods and services be produced?
Who will consume these goods and services?

4. Economic Systems
Economic System - Method used by society to produce and distribute goods and services
Economic goals:
Efficiency
Economic Freedom
Economic Security
Economic Equity
Economic Growth

5. What is an economic system?
Daily Writing Prompt
What is an economic system?

6. Efficiency
Maximizing what you produce using the resources that you have
Specialization – everyone specializes in a particular job
Delivering the right good, in the right quantity, to the right people, at the right price.

7. Economic Freedom The ability to make your own choices
Buy what you want, work where you want, own property, and become an entrepreneur.

8. Economic Security
People want to know that help will be available when they are in need.
Safety net – set of programs to protect people who face unfavorable economic conditions such as layoffs or injuries.
Examples of safety nets in the U.S.?

9. Economic Equity Defined differently in different societies
Should everyone have an equal share of goods and services?
Or, should everyone have equal opportunity to compete?

10. Economic Growth
A nation’s economy must grow to provide jobs & greater income.
Improvement in the standard of living, or level of economic prosperity
Innovation – the process of bringing new methods, products, or ideas into use.
Industrial Revolution
The Internet

11. Traditional Economy
Relies on habit, custom, or ritual to decide what to produce & how to produce it
Small communities
Tend to remain stagnant & resist change
Lack modern conveniences
Low standard of living

12. Market Economy Economic decisions are made by consumers
Also called free markets, or capitalism

13. Command Economy (Centrally Planned)
Government decides how to answer three economic questions
Controlled by strong, centralized government
Usually focuses on industrial goods

14. Mixed Economy Combination of Market and Command economic systems
Market forces control most consumer goods
Government directs industry in need areas.

15. Homework Read pgs. 23-27 and answer questions 1,2 & 4
Due tomorrow, 9/14