Presentation on theme: "What is the difference between needs and wants?"— Presentation transcript:
1 What is the difference between needs and wants? Daily Writing PromptWhat 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 SystemsEconomic System - Method used by society to produce and distribute goods and servicesEconomic goals:EfficiencyEconomic FreedomEconomic SecurityEconomic EquityEconomic Growth
5 What is an economic system? Daily Writing PromptWhat is an economic system?
6 EfficiencyMaximizing what you produce using the resources that you haveSpecialization – everyone specializes in a particular jobDelivering 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 SecurityPeople 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 GrowthA nation’s economy must grow to provide jobs & greater income.Improvement in the standard of living, or level of economic prosperityInnovation – the process of bringing new methods, products, or ideas into use.Industrial RevolutionThe Internet
11 Traditional EconomyRelies on habit, custom, or ritual to decide what to produce & how to produce itSmall communitiesTend to remain stagnant & resist changeLack modern conveniencesLow 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 questionsControlled by strong, centralized governmentUsually focuses on industrial goods
14 Mixed Economy Combination of Market and Command economic systems Market forces control most consumer goodsGovernment directs industry in need areas.
15 Homework Read pgs. 23-27 and answer questions 1,2 & 4 Due tomorrow, 9/14