economic systems and institutions kcct coach chapter 9
TRANSCRIPT
![Page 1: Economic Systems and Institutions KCCT Coach Chapter 9](https://reader035.vdocuments.us/reader035/viewer/2022062309/56649e4f5503460f94b46f3d/html5/thumbnails/1.jpg)
Economic Systems and Economic Systems and InstitutionsInstitutions
KCCT Coach Chapter 9
![Page 2: Economic Systems and Institutions KCCT Coach Chapter 9](https://reader035.vdocuments.us/reader035/viewer/2022062309/56649e4f5503460f94b46f3d/html5/thumbnails/2.jpg)
Size of Economic Systems
• ECONOMY refers to the structure of the management of resources
• Generally, when you hear people speak of “the economy”, they are referring to the NATIONAL ECONOMY
• ECONOMIC SYSTEMS can be large or small—for a country or just one person
![Page 3: Economic Systems and Institutions KCCT Coach Chapter 9](https://reader035.vdocuments.us/reader035/viewer/2022062309/56649e4f5503460f94b46f3d/html5/thumbnails/3.jpg)
Size of Economic Systems
• Any entity that has and uses resources has an economy
• this includes Countries, States, Cities, Households, Businesses, and individuals
• a BUDGET is a plan for the management of the resources for an economy
• you can BUDGET money, time, people, water, oil, etc. (any resource)
![Page 4: Economic Systems and Institutions KCCT Coach Chapter 9](https://reader035.vdocuments.us/reader035/viewer/2022062309/56649e4f5503460f94b46f3d/html5/thumbnails/4.jpg)
Please select a Team.
Toxic waste
rs
Globe tr
otters
Awesome A
s
Pretty Purp
le ...
Rocksta
r M&M
s
Golden Cobras
17% 17% 17%17%17%17%1. Toxic wasters
2. Globe trotters
3. Awesome As
4. Pretty Purple Princesses
5. Rockstar M&Ms
6. Golden CobrasResponse GridResponse Grid
![Page 5: Economic Systems and Institutions KCCT Coach Chapter 9](https://reader035.vdocuments.us/reader035/viewer/2022062309/56649e4f5503460f94b46f3d/html5/thumbnails/5.jpg)
Which economy is largest?
0%0%0%0%
individual city state national
1. individual
2. city
3. state
4. national
Response GridResponse Grid
![Page 6: Economic Systems and Institutions KCCT Coach Chapter 9](https://reader035.vdocuments.us/reader035/viewer/2022062309/56649e4f5503460f94b46f3d/html5/thumbnails/6.jpg)
A budget is a type of:
0%0%0%0%
economy plan currency product
1. economy
2. plan
3. currency
4. product
Response GridResponse Grid
![Page 7: Economic Systems and Institutions KCCT Coach Chapter 9](https://reader035.vdocuments.us/reader035/viewer/2022062309/56649e4f5503460f94b46f3d/html5/thumbnails/7.jpg)
Participant Scores0 Participant 1
0 Participant 2
0 Participant 3
0 Participant 4
0 Participant 5
![Page 8: Economic Systems and Institutions KCCT Coach Chapter 9](https://reader035.vdocuments.us/reader035/viewer/2022062309/56649e4f5503460f94b46f3d/html5/thumbnails/8.jpg)
Financial Institutions
• a FINANCIAL INSTITUTION is an establishment dedicated to helping individuals and businesses to manage money
• the most common form of FINANCIAL INSTITUTION is a BANK
![Page 9: Economic Systems and Institutions KCCT Coach Chapter 9](https://reader035.vdocuments.us/reader035/viewer/2022062309/56649e4f5503460f94b46f3d/html5/thumbnails/9.jpg)
Custody of Funds
• BANKS offer a safe, secure place to keep your money
• Most people DEPOSIT (place in the custody) their paychecks in banks
• Keeping your money in the bank prevents robbery and also reduces the temptation to spend your money
![Page 10: Economic Systems and Institutions KCCT Coach Chapter 9](https://reader035.vdocuments.us/reader035/viewer/2022062309/56649e4f5503460f94b46f3d/html5/thumbnails/10.jpg)
Loaning Money
• One way banks make money is by issuing LOANS (they let people borrow money)
• Loans are amounts of money lent that are paid back with INTEREST (a charge for borrowing money)
![Page 11: Economic Systems and Institutions KCCT Coach Chapter 9](https://reader035.vdocuments.us/reader035/viewer/2022062309/56649e4f5503460f94b46f3d/html5/thumbnails/11.jpg)
Exchanging Currency
• Banks keep all DENOMINATIONS (sizes) of money on hand
• Denominations include bills and coins
• banks will exchange money for you
• banks will also exchange US currency for foreign currency
![Page 12: Economic Systems and Institutions KCCT Coach Chapter 9](https://reader035.vdocuments.us/reader035/viewer/2022062309/56649e4f5503460f94b46f3d/html5/thumbnails/12.jpg)
Issuing Money• banks also issue money—usually when
people cash checks
• a CHECK is a promise of money from one person/organization to another
• when a check is brought to a bank, the teller checks to see if the writer’s account can cover the amount
• checks eliminate the hassle of carrying large amounts of cash
![Page 13: Economic Systems and Institutions KCCT Coach Chapter 9](https://reader035.vdocuments.us/reader035/viewer/2022062309/56649e4f5503460f94b46f3d/html5/thumbnails/13.jpg)
Extending Credit
• CREDIT is an amount of money a person is allowed to spend, provided they pay it back in a timely manner
• Credit can be given in the form of a loan, on CREDIT CARDS, or on a “tab”
• CREDIT CARDS authorize the holder to spend a certain amount of money and repay it with INTEREST
![Page 14: Economic Systems and Institutions KCCT Coach Chapter 9](https://reader035.vdocuments.us/reader035/viewer/2022062309/56649e4f5503460f94b46f3d/html5/thumbnails/14.jpg)
A bank is one type of financial institution. Which of the following is another type of
financial institution?
0%
0%
0%
0% 1. grocery store
2. department of public utilities
3. investment company
4. realty agencyResponse GridResponse Grid
![Page 15: Economic Systems and Institutions KCCT Coach Chapter 9](https://reader035.vdocuments.us/reader035/viewer/2022062309/56649e4f5503460f94b46f3d/html5/thumbnails/15.jpg)
Which of the following can you NOT do at a bank?
0%0%0%0%
deposit money withdraw money
buy something apply for credit
1. deposit money
2. withdraw money
3. buy something
4. apply for creditResponse GridResponse Grid
![Page 16: Economic Systems and Institutions KCCT Coach Chapter 9](https://reader035.vdocuments.us/reader035/viewer/2022062309/56649e4f5503460f94b46f3d/html5/thumbnails/16.jpg)
A bank will issue you money if you present them with a valid…
form
of i
dentif
icat
ion
chec
k lo
an
den
omin
atio
n
0% 0%0%0%
1. form of identification
2. check
3. loan
4. denomination Response GridResponse Grid
![Page 17: Economic Systems and Institutions KCCT Coach Chapter 9](https://reader035.vdocuments.us/reader035/viewer/2022062309/56649e4f5503460f94b46f3d/html5/thumbnails/17.jpg)
Team Scores0 Team 1
0 Team 2
0 Team 3
0 Team 4
0 Team 5
![Page 18: Economic Systems and Institutions KCCT Coach Chapter 9](https://reader035.vdocuments.us/reader035/viewer/2022062309/56649e4f5503460f94b46f3d/html5/thumbnails/18.jpg)
Free Enterprise and Profit
• the US economic system is based on FREE ENTERPRISE (private businesses are free to organize and operate for profit in competition with other businesses without strict government control)
• the only government control is to protect the public interests
![Page 19: Economic Systems and Institutions KCCT Coach Chapter 9](https://reader035.vdocuments.us/reader035/viewer/2022062309/56649e4f5503460f94b46f3d/html5/thumbnails/19.jpg)
Profit
• In a free enterprise system, businesses seek to earn a PROFIT (the difference between the cost to produce the product or provide the service and the REVENUES)
• REVENUE is the full amount of money received
![Page 20: Economic Systems and Institutions KCCT Coach Chapter 9](https://reader035.vdocuments.us/reader035/viewer/2022062309/56649e4f5503460f94b46f3d/html5/thumbnails/20.jpg)
Loss
• In some cases a business is not able to sell its product/service for a PROFIT.
• If the product/service is sold for less than the production cost, then the business takes a LOSS
• The goal in a free enterprise system is to maximize PROFITS and minimize LOSSES
![Page 21: Economic Systems and Institutions KCCT Coach Chapter 9](https://reader035.vdocuments.us/reader035/viewer/2022062309/56649e4f5503460f94b46f3d/html5/thumbnails/21.jpg)
Marketing
• when businesses compete in a free enterprise system, they sell the same or similar products/services to the same MARKET, or group of people to whom the product/service is readily available for purchase
• the goal is to get your target MARKET to buy from you and not your competition
![Page 22: Economic Systems and Institutions KCCT Coach Chapter 9](https://reader035.vdocuments.us/reader035/viewer/2022062309/56649e4f5503460f94b46f3d/html5/thumbnails/22.jpg)
Market Competition
• the most common way businesses compete is through pricing. The goal is to under price your competition, but still make a profit
• Businesses also compete through service quality—they will also offer WARRANTIES (guarantees) on their products.
![Page 23: Economic Systems and Institutions KCCT Coach Chapter 9](https://reader035.vdocuments.us/reader035/viewer/2022062309/56649e4f5503460f94b46f3d/html5/thumbnails/23.jpg)
You are a manufacturer of tires. It costs you $30 to make a particular model of tire, which you sell for $50. What is
your profit?
0%
0%
0%
0% 1. $20
2. $30
3. $50
4. you take a loss, not a profit Response GridResponse Grid
![Page 24: Economic Systems and Institutions KCCT Coach Chapter 9](https://reader035.vdocuments.us/reader035/viewer/2022062309/56649e4f5503460f94b46f3d/html5/thumbnails/24.jpg)
The most common way businesses compete with each other is through…
0%0%0%0%
government regula... offering complete...
pricing eliminating profits
1. government regulation
2. offering completely different products
3. pricing
4. eliminating profitsResponse GridResponse Grid
![Page 25: Economic Systems and Institutions KCCT Coach Chapter 9](https://reader035.vdocuments.us/reader035/viewer/2022062309/56649e4f5503460f94b46f3d/html5/thumbnails/25.jpg)
Racing Leader Board
![Page 26: Economic Systems and Institutions KCCT Coach Chapter 9](https://reader035.vdocuments.us/reader035/viewer/2022062309/56649e4f5503460f94b46f3d/html5/thumbnails/26.jpg)
Which group faces competition in a free enterprise system?
sto
res
man
ufact
urers
ser
vice
pro
vider
s
all
of th
e ab
ove
0% 0%0%0%
1. stores
2. manufacturers
3. service providers
4. all of the above
Response GridResponse Grid
![Page 27: Economic Systems and Institutions KCCT Coach Chapter 9](https://reader035.vdocuments.us/reader035/viewer/2022062309/56649e4f5503460f94b46f3d/html5/thumbnails/27.jpg)
You are a plumber. Your expenses for fixing a sink total $35. You charge the customer $55 for the repair. What is
your revenue?
0%
0%
0%
0% 1. $20
2. $35
3. $55
4. you do not have a revenue in this transaction
Response GridResponse Grid
![Page 28: Economic Systems and Institutions KCCT Coach Chapter 9](https://reader035.vdocuments.us/reader035/viewer/2022062309/56649e4f5503460f94b46f3d/html5/thumbnails/28.jpg)
Quality Clocks produced a digital clock for $10 and tried to sell it for $15. Unfortunately,
nobody wanted to pay that much for the clock, so they finally had to drop the price to $8 to sell it. This means that Quality clocks took a loss of
how much?0%0%0%0%
$2 $5 $8 $10
1. $2
2. $5
3. $8
4. $10Response GridResponse Grid
![Page 29: Economic Systems and Institutions KCCT Coach Chapter 9](https://reader035.vdocuments.us/reader035/viewer/2022062309/56649e4f5503460f94b46f3d/html5/thumbnails/29.jpg)
Team MVPPoints Team Participant
0 Team Participant
0 Team Participant
0 Team Participant
0 Team Participant
0 Team Participant
0 Team Participant
0 Team Participant
0 Team Participant
0 Team Participant
0 Team Participant
![Page 30: Economic Systems and Institutions KCCT Coach Chapter 9](https://reader035.vdocuments.us/reader035/viewer/2022062309/56649e4f5503460f94b46f3d/html5/thumbnails/30.jpg)
Which of the following would you do at a bank?
0%0%0%0%
buy products print currency apply for a loan make a profit
1. buy products
2. print currency
3. apply for a loan
4. make a profit
Response GridResponse Grid
![Page 31: Economic Systems and Institutions KCCT Coach Chapter 9](https://reader035.vdocuments.us/reader035/viewer/2022062309/56649e4f5503460f94b46f3d/html5/thumbnails/31.jpg)
Which of the following would have the smallest economy?
Nat
ion
House
hold
Count
y
Sta
te
0% 0%0%0%
1. Nation
2. Household
3. County
4. State
Response GridResponse Grid
![Page 32: Economic Systems and Institutions KCCT Coach Chapter 9](https://reader035.vdocuments.us/reader035/viewer/2022062309/56649e4f5503460f94b46f3d/html5/thumbnails/32.jpg)
Free enterprise means that businesses…
0%0%0%0%
rely on th... try to tak... compete wi... try to avo...
1. rely on the government to set prices
2. try to take a loss
3. compete with one another
4. try to avoid revenues Response GridResponse Grid
![Page 33: Economic Systems and Institutions KCCT Coach Chapter 9](https://reader035.vdocuments.us/reader035/viewer/2022062309/56649e4f5503460f94b46f3d/html5/thumbnails/33.jpg)
Fastest Responders (in seconds)0 Participant 1
0 Participant 2
0 Participant 3
0 Participant 4
0 Participant 5
![Page 34: Economic Systems and Institutions KCCT Coach Chapter 9](https://reader035.vdocuments.us/reader035/viewer/2022062309/56649e4f5503460f94b46f3d/html5/thumbnails/34.jpg)
It cost you $11 to produce a widget. Which price would result in your taking a loss?
0%
0%
0%
0% 1. $10
2. $11
3. $12
4. $20 Response GridResponse Grid
![Page 35: Economic Systems and Institutions KCCT Coach Chapter 9](https://reader035.vdocuments.us/reader035/viewer/2022062309/56649e4f5503460f94b46f3d/html5/thumbnails/35.jpg)
Which of the following statements is true?
indi
vidual
s an
d hou.
..
only
the
feder
al g
ov...
only
gove
rnm
ent e
nti...
indi
vidual
s an
d ho...
0% 0%0%0%
1. individuals and households can have budgets
2. only the federal government has a budget
3. only government entities have economies
4. individuals and households do not have economies
Response GridResponse Grid
![Page 36: Economic Systems and Institutions KCCT Coach Chapter 9](https://reader035.vdocuments.us/reader035/viewer/2022062309/56649e4f5503460f94b46f3d/html5/thumbnails/36.jpg)
Racing Leader Board
![Page 37: Economic Systems and Institutions KCCT Coach Chapter 9](https://reader035.vdocuments.us/reader035/viewer/2022062309/56649e4f5503460f94b46f3d/html5/thumbnails/37.jpg)
Which of the following is NOT a financial institution?
0%0%0%0%
investment advise... bank meat market savings and loan ...
1. investment advisement agency
2. bank
3. meat market
4. savings and loan company Response GridResponse Grid
![Page 38: Economic Systems and Institutions KCCT Coach Chapter 9](https://reader035.vdocuments.us/reader035/viewer/2022062309/56649e4f5503460f94b46f3d/html5/thumbnails/38.jpg)
What percentage of your current points would you like to wager on the next
question?
1. 0%
2. 25%
3. 50%
4. 75%
5. 100%Response GridResponse Grid
![Page 39: Economic Systems and Institutions KCCT Coach Chapter 9](https://reader035.vdocuments.us/reader035/viewer/2022062309/56649e4f5503460f94b46f3d/html5/thumbnails/39.jpg)
Revenues are equal to…
0%
0%
0%
0% 1. the losses taken by the business
2. the prices paid by customers
3. the profit taken by the business
4. the taxes paid by the business
Response GridResponse Grid
![Page 40: Economic Systems and Institutions KCCT Coach Chapter 9](https://reader035.vdocuments.us/reader035/viewer/2022062309/56649e4f5503460f94b46f3d/html5/thumbnails/40.jpg)
Racing Leader Board