journal 1 paragraph, 4 sentences topic: in your own words, please explain what economics is and how...
TRANSCRIPT
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. )
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
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.
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
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
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
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
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
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
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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
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
Journal
1 paragraph, 4 sentences
Topic: What does utility mean in regards to what you learned yesterday? Please explain 3 of the 5 utilities.
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.
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.
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 market
http://www.merriam-webster.com/dictionary/capitalism
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/capitalism
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_enterprise.asp#ixzz27mmjvPZn
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?!?!?!?!!?!?!
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
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!
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.
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.
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?
Provider of Service
Also, the government is responsible for the social welfare system and providing Medicare and Medicaid.
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
Regulator - Law Maker
Set up agencies toprotect workers
and consumers. EX:
FDA EEOC OSHA CPSC
Protect private property rights.
EX: PatentsTrademarks
Sherman Antitrust act (Monopolies)
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.
Socialism
a transitional stage after the proletarian revolution in the development of a society from capitalism to communism: characterized by the distribution of income according to work rather than need
Socialist believe that capitalism oppresses the lower class