1 objectives: 1. describe economic concepts that apply to satisfying economic wants. 2. explain the...
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DAILY INFORMATION 10/2/2012
1
Objectives:
1. Describe economic concepts that apply to satisfying economic wants.
2. Explain the role of capital formation in an economy.
Warm Up:
Explain the difference between an economic need and an economic want.
List two examples of each
Agenda:
1. Complete warm-up
2. Econ 101 PowerPoint
3. Group activity
4. Bottom Line
WANTS
NEEDS
ECONOMIC VS. NONECONOMIC WANTS
Economic WantsThe desire for scarce material goods and
services
Non-Economic WantsThe desire for nonmaterial things that are not
scarce (air, sunshine, friendship, happiness, respect)
ECONOMIC VS. NONECONOMIC WANTS
ECONOMIC UTILITY Ability of a good or service to satisfy a want
A good or service that has utility is a useful good or service
TYPES OF UTILITY
Form Place
Time
Possession
ECONOMIC UTILITIESForm
Place
Time
Possession
Change in the form or shape of a productEx: clothing that has a particular fabric or style you desire
Having a product or service where a customer can buy itEx: available in a nearby store
Having a product or service available at a certain time of year or a convenient time of dayEx: Is the store open when you are ready to buy?Transfer of ownership (rent, borrow, buy)Ex: Is the product/service available at a price you can afford and are willing to pay?
FACTORS OF PRODUCTION
CapitalGoods
Labor
Land (natural resources)
Entrepreneurship
FACTORS OF PRODUCTIONLand
Labor
CapitalGoodsEntre-preneurship
Anything provided by nature that affects productive abilityEx: fertile soil, minerals, water
Human effort into production, can be physical and mentalEx: employee knowledge and skills
Equipment used to produce other goodsEx: buildings, tools, machines
Ownership of a businessEx: starting a business (planning, managing, risk)
CAPITAL FORMATION VS. FINAL PRODUCT
Capital FormationSteel used to produce tools rather than the final
product, a car.
Immediate ReactionUsing steel to create tools needed for final
production will decrease the number of final products (not enough steel for car production)
Future ReactionHaving the tools to create the final product will,
over time, allow for more cars to be produced.
NAME THAT FACTOR OF PRODUCTION!
NAME THAT FACTOR OF PRODUCTION!
Labor!
NAME THAT FACTOR OF PRODUCTION!
NAME THAT FACTOR OF PRODUCTION!
Land!
NAME THAT FACTOR OF PRODUCTION!
NAME THAT FACTOR OF PRODUCTION!
Capital!
NAME THAT FACTOR OF PRODUCTION!
NAME THAT FACTOR OF PRODUCTION!
Entrepreneur!
GROUP ACTIVITY
DAILY INFORMATION 10/3/2012
21
Objectives:
Discuss three economic systems and three political systems.
Explain why a business considers the economic-political system of a country.
Warm Up:
Explain why no country has enough resources to satisfy all the wants of all people for material goods and services.
Write this down in your binder.
Agenda:
1. Complete warm-up
2. Economic and Political systems P.P.
3. Group activity4. Individual
activity5. Bottom Line
WARM UP QUESTION ANSWER
Scarce resources
Capital goods vs. Consumer goods/Final product
Answer the what, how, and for whom questions
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ECONOMIC SYSTEMSAn organized way for a country to decide how to use its productive resources…..
What to produce
How to produce
Who should we produce for
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ECONOMIC SYSTEMS Market economy
individual buying decisions in the marketplace determine what, how, and for whom goods and services will be produced
Command economy central planning authority, under control of
government, owns most of the factors of production and determines what, how, and for whom goods and services will be produced
Mixed economy aspects of a market and a command
economy are used to make decisions about what, how, and for whom goods and services will be produced
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POLITICAL SYSTEMS
Capitalism private citizens are free to go into business
for themselvesproduce whatever they choose, and
distribute what they produce
Socialism government controls the use of the
country’s factors of production
Communism (extreme socialism) all or almost all of a nation’s factors of
production are owned by the government
GROUP ACTIVITY Checkpoints:
Page 55Page 56Page 58Page 61
3.1 Assessment on page 56
3.2 Assessment on page 61
Review Terms and Concepts on page 751,2,3,5,8,10,
12,13,16,17,18,19,20,21,22,23,24,25
DAILY INFORMATION 10/5/2012
27
Objectives:Describe why private property is important to capitalism.
Describe how prices are set in a capitalistic system.
Warm Up:
Get into your groups and continue working on the activity from Wednesday.
Agenda:
1. Complete warm-up
2. Individual assignment
3. Review of assignment
4. Fundamentals of capitalism P.P.
5. Bottom Line
DAILY INFORMATION 10/9/2012
28
Objectives:
Describe why private property is important to capitalism.
Describe how prices are set in a capitalistic system.
Warm Up:
Write a paragraph describing what capitalism is
Agenda:
1. Complete warm-up
2. Fundamentals of capitalism P.P.
3. Bottom Line
29
FUNDAMENTALS OF CAPITALISM
Private property (basic feature of capitalism) individuals have the right to own, use, and sell.
Own Land Hire Labor Own Capital Goods
If you make it, you own it!
Why is private property important to capitalism?
With the right to buy, own, and sell property, individuals can control productive resources.
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PROFIT Total money received from customers
minus the total cost to produce the products or services.
Cost of land, labor, capital, materials
Roughly 5% of the cost of goods and services is considered profit
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HOW DO I MAKE A PROFIT?
Produce goods or services that people want at a price they are willing to pay.
Demand vs. Want
Demand = number of products that will be bought (want, ability, willingness)
Want = desire, but not ability or willingness to buy products
DEMAND AND PRICE
Relationship between demand and price
Increased demand = Increased price
Decrease demand = Decrease price
Price
SUPPLY AND PRICESupply is the number of products that will
be offered for sale.
How supply influences price:
Decrease supply = Increase price
Increase supply = Decrease price
PRICE Based on what we just learned, how is
price determined?
Supply and Demand
Prices are the result of the decisions of individual consumers to buy products and of individual producers to make and sell products
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SUPPLY AND DEMAND
COMPETITION
Rivalry among sellers for consumers’ dollars
How can competition in business benefit society?
Improved quality of productsDevelop new productsOperate efficiently to keep prices
down
ATTRACTING CUSTOMERS
What are some of the ways you can attract customers over your competitors?
Lowering prices Provide better quality Adding features Unusual and colorful packaging Extensive advertising campaign
WHAT IS AN MONOPOLY?
The existence of one seller of a productNo competition
Could charge unreasonably high prices
Customers don’t have a choice if they need or want a product/service
HOMEWORK Check your grades in Infinite
Campus.
Marking Period 1 grades are due by Wednesday!
DAILY INFORMATION 10/10/2012
40
Objectives:
Describe the economy and all the components of an economy.
Warm Up:
Take out your binder and place it on your desk for the notebook check.
Agenda:
1. Complete warm-up
2. Review the assignment from yesterday.
3. Managing the Economy P.P.
4. Study Guide5. Bottom Line
SUPPLY AND DEMANDSupply
The quantity of goods and services that
producers are willing and able to provide
When Supply > Demand,
the Price goes DOWN
Demand
The willingness and ability of consumers to buy goods and services
When Demand > Supply,the Price goes UP
Slide 41
WHAT IS THE ECONOMY?
Slide 42
• The economy - the activities related to making and distributing goods and services.
• A market economy is based on the law of supply and demand. (U.S)o The price is determined by what
consumers are willing to pay and sellers are willing to accept.
THE BUSINESS CYCLE
Slide 43
Four Stages: Recovery, Peak, Recession, Trough
WHEN ECONOMY IS…
…growing…
People buy goods and services
Jobs are created Businesses are
hiring
…slowing…
People buy fewer goods and services
Fewer people are hired; there are layoffs
Businesses are not growing
Slide 44