1. Agenda Read N.E. Chapter 6 Review Powerpoint for next class (online)
Discussion or quiz on articles
Review Factors of Production
Production Possibilities Worksheet
Economic Systems, Questions and Goals
Adam Smith and Karl Marx
Circular Diagram of an Economy
Homework
Read N.E. Chapter 6
Review Powerpoint for next class (online)
Read “Current Reading Assignment” (online)

2. Questions What factor of production is key to Taiwan’s success?
Which factor of production was important....
When Columbus sailed to the new world?
During the period of colonization?
During the industrial revolution?
How does this effect you in 2014?

3. Student Video…Four Factors of Production

4. a couple questions…. 1. A production possibilities frontier shows
(a) farm goods and factory goods produced by an economy.
(b) the maximum possible output of an economy.
(c) the minimum possible output of an economy.
(d) underutilization of resources.
2. An economy that is using its resources to produce the maximum number of goods and services is described as
(a) efficient.
(b) underutilized.
(c) growing.
(d) trading off.

5. Worksheet 5

6. Production Possibilities Worksheet

7. Production Possibilities Handout

8. THREE MINUTE BREAK

9. Economic Systems, Questions and Goals
Societies organize themselves within different systems to allocate resources to produce goods and services to achieve economic goals
Economic Systems, Questions & Goals
3 Economic Three Economics Systems
Questions Free Mixed Centrally Planned
Market Economy Economy
What gets Consumers role Government
Produced?
for
How it gets Producers Government
Produced? individuals
Who Income and Government
Consumes?
government 9

10. The Five Economic Goals
Growth
More stuff
Freedom
Individuals free to choose
Efficiency
Maximum Output
Security
Everyone has a minimum
Equity
Equal distribution of output (goods and services)
Sharing is caring 10

11. What is the most common economic system in the world?

12. What is the most common economic system in the world?
ANSWER: Mixed Economies
WHY? Let’s talk about the five economic
goals

13. The Five Economic Goals
Growth
More stuff
Freedom
Individuals free to choose
Efficiency
Maximum Output
Security
Everyone has a minimum
Equity
Equal distribution of output (goods and services)
Sharing is caring
Take a few minutes, which goal is most important to you?
SURVEY OF THE CLASS

14. Which Goal is best achieved by which Economic System?
Growth
Efficiency
Freedom
Security
Equity
Free Market
Centrally Planned 14

15. What is the most common economic system in the world?
ANSWER: Mixed Economies
WHY? Because societies / nations want some of each of the goals 15

16. Economic Systems, Questions & Goals
Three
Economic Three Economic Systems
Questions Free Mixed Centrally Planned
Market Economy Economy
1. What gets Consumers role Government
Produced?
for
2. How it gets Producers Government
Produced? individuals
3. Who Income and Government
Consumes?
government

17. Adam Smith 1700s Philosopher Focus on…
What was going on in the late 1700s?
Philosopher
Individual (i.e. entrepreneur) creates value
Focus on…
Growth
Freedom
Efficiency

18. Every individual necessarily labors to render the annual revenue of society as great as he can. He generally neither intends to promote the public interest, nor knows how much he is promoting it. He intends only his own gain, and he is, in this, as in many other cases, led by an invisible hand to promote an end which was not part of his intention.
Adam Smith

19. Karl Marx
Late 1800s,early 1900s
What was going on in late 1800s / early 1900s?
Labor, not entrepreneur, creates value
Focus on…
Equity
Security

20. “Labour is the source of all wealth.” Karl Marx

21. Circular Diagram of an Economy

22. What type of Economics System?
Why?

23. What type of Economics System?
Why?

24. Let’s go back to Economic Goals….
Examples of why I think people are hardwired for equity
Test results
Kindergarten playground $5

25. Winston Churchill’s Description
The inherent vice of capitalism is the unequal sharing of blessings; the inherent virtue of socialism is the equal sharing of miseries.
He advocated free market stuff

26. Homework
Read N.E. Chapter 6 (Why Bill Gates is so much richer than you are)
Review Powerpoint for next class (online)
Read “Current Reading Assignment” (online). Cuba (

27. HANDOUTS