1. Journal 1 paragraph, 4 sentences Topic: In your own words, please explain what economics is and how it affects you in your personal life. (You will probably have to do a little research to find out what economics is. )

2. Economics

3. What is Economics? Economics – the study of production, consumption, and sales of products. Economy - is how people distribute scarce resources to produce various commodities (products) and how those commodities are distributed for societal consumption

4. Activity What is your own definition of economics.  Share

5. Impact of Economics  in a stable and expansive economy, people will spend more and have more jobs opportunities  in an unstable and slow economy, unemployment rates will be high and jobs will be harder to find What do you think?  Write down how economics might affect your future career.

6. Economic Resources Resources are anything used to make goods or services, also called factors of production They are scarce and cannot meet all human wants and needs  human necessities  include goods and services we cannot live without  human wants  include every other type of goods and services we may want but do not need  examples:  need: open heart surgery  want: liposuction

7. Four Factors of Production 1. Land natural resources found on earth earth or seas 2. Labor human resources includes all people who work within an economy 3. Capital monetary resources needed to start and operate a business goods used in the production process 4. Entrepreneurship involves human skills required to start and run a business organizes the other three factors to create economic goods and services

8. Economic Utility Is the value added to a product or service by the role of marketing Includes these five types:  time utility  place utility  form utility  possession utility  information utility Utility means customer satisfaction 8

9. Time Utility Enhances value by having a product or service available to consumers during a certain time of day, week, month or year Examples include:  stores staying open after 5 p.m. for those who work during the day  retailers providing gift wrapping during the holiday season 9

10. Place Utility Enhances value by placing products or services in easily accessible locations for consumers Examples include:  banks placing ATMs outside of convenience stores, stadiums, theaters, etc.  restaurants providing delivery or curbside pickup 10

11. Form Utility Enhances value by creating more useful or desirable products out of raw materials or separate parts Examples include:  grocery stores selling frozen or fresh pre-prepared meals  car manufacturers installing a CD player in a car  retailers selling bundles of products which complement each other 11

12. Possession Utility Enhances value by allowing for easy use by consumer or transfer of ownership to consumer Examples include:  retailers providing layaway or financing for large purchases  property owners renting to those who prefer not to or cannot afford to purchase a home  Forms of payment-cash, credit, lease 12

13. Information Utility Enhances value by supplying consumers with information Examples include:  informed sales staff describing a product’s features and benefits  advertising informing consumers about a new product  retailers offering a lesson on how to most effectively use a product 13

14. Activity

15. Journal 1 paragraph, 4 sentences Topic: What does utility mean in regards to what you learned yesterday? Please explain 3 of the 5 utilities.

16. Basic Economic Systems Capitalism - USA Socialism – everyone works according to his/her ability. Everyone is given what he/she needs according to his/her contribution. Communism – everyone works according to his/ her ability. Everyone is given what he/she needs no matter how he/she contributed.

17. Capitalism An economic and political system in which a country's trade and industry are controlled by private owners, as opposed to the government, for profit.

18. Capitalism an economic system characterized by private or corporate ownership of capital goods, by investments that are determined by private decision, and by prices, production, and the distribution of goods that are determined mainly by competition in a free marketprivatecapitalfree market http://www.merriam- webster.com/dictionary/capitalism

19. Capitalism a way of organizing an economy so that the things that are used to make and transport products (such as land, oil, factories, ships, etc.) are owned by individual people and companies rather than by the government http://www.learnersdictionary.com/search/capitalis m

20. Basic Principals of Capitalism Free Enterprise System - An economic system where few restrictions are placed on business activities and ownership. Read more: http://www.investopedia.com/terms/f/free_enterpr ise.asp#ixzz27mmjvPZn http://www.investopedia.com/terms/f/free_enterpr ise.asp#ixzz27mmjvPZn

21. Freedom of Ownership Citizens who live under a free enterprise system are free to own personal property. Intellectual property – ideas. You must get a patent in the U.S. to protect your property. The use of patented material requires permission from the owner. What does this mean?!?!?!?!!?!?!

22. Example If you want to make a shirt to advertise something but you wanted to use a logo, you would have to get permission. y soup!!! Please buy

23. Competition This is the fueling force behind the free enterprise system. Without competition in the marketplace, there would be no incentive to develop a better and more of a cutting edge product. Without competitions we have a and monopolies are bad!

24. Price Competition The focus of the sale price of a product. The thought is that if everything about the product is equal in two different stores, the customer is going to buy the product that is less expensive.

25. Nonprice Competition Quality, Service, Financing

26. Monopoly A company with EXCLUSIVE control over a product or a piece of the market. Examples: local cable service, local water services, electric companies used to be Monopolies are not permitted in free enterprise because they stop competition.

27. Risk vs. Reward Risk implies the potential for loss or failure. Reward is the benefits reaped. Companies must calculate whether or not the risk is worth the reward. What are some examples of taking risks?

28. Profit Money earned after an exchange. Profit = Revenue - Cost

29. The Role of the Government Provider of Service Supporter of Business Regulator Competitor

30. Provider of Service Also, the government is responsible for the social welfare system and providing Medicare and Medicaid.

31. Supporter of Business Disaster assistance - FEMA Small Business Administration – set up to provide educational materials to small business owners for success. Largest consumer of goods (U.S. made) – military and defense materials. Establish trade alliances - maintains relationships with foreign countries to ensure trade

32. Regulator - Law Maker Set up agencies to protect workers and consumers. EX:  FDA  EEOC  OSHA  CPSC Protect private property rights. EX: Patents Trademarks Sherman Antitrust act (Monopolies)

33. Competitor U.S. Postal Service competes with UPS and Fed EX TVA provides electricity to rural areas in the South, competes with electric companies National Parks and Campgrounds compete with privately owned tourist attractions.

34. Key Terms Supply – the AMOUNT of goods producers are willing to make and sell. Demand – the consumers WILLINGNESS and ABILITY to buy products Surplus – supply exceeds (>) demand. Shortage – demands exceeds (>) supply. Equilibrium- supply = demand

35. Role of Consumer Deciding which businesses survive Determining prices

36. Business Survival Consumers keep businesses in business. How?!?!

37. Determine Prices

38. Socialism a transitional stage after the proletarian revolution in the development of a society from capit alism to communism: characterized by the distribution of inc ome according to work rather than need Socialist believe that capitalism oppresses the lower class

39. Communism a theory or system of social organization based on th e holding of allproperty in common, actual ownershi p being ascribed to thecommunity as a whole or to th e state.