splash screen. section 1-main idea guide to reading big idea an economic system is the way a society...
TRANSCRIPT
![Page 1: Splash Screen. Section 1-Main Idea Guide to Reading Big Idea An economic system is the way a society organizes the production and consumption of goods](https://reader035.vdocuments.us/reader035/viewer/2022062804/5697bf861a28abf838c87c52/html5/thumbnails/1.jpg)
Splash Screen
![Page 2: Splash Screen. Section 1-Main Idea Guide to Reading Big Idea An economic system is the way a society organizes the production and consumption of goods](https://reader035.vdocuments.us/reader035/viewer/2022062804/5697bf861a28abf838c87c52/html5/thumbnails/2.jpg)
Section 1-Main Idea
Guide to Reading
Big Idea
An economic system is the way a society organizes the production and consumption of goods and services.
![Page 3: Splash Screen. Section 1-Main Idea Guide to Reading Big Idea An economic system is the way a society organizes the production and consumption of goods](https://reader035.vdocuments.us/reader035/viewer/2022062804/5697bf861a28abf838c87c52/html5/thumbnails/3.jpg)
Section 1
Goods and Services
Four factors of production are necessary to produce goods and services.
![Page 4: Splash Screen. Section 1-Main Idea Guide to Reading Big Idea An economic system is the way a society organizes the production and consumption of goods](https://reader035.vdocuments.us/reader035/viewer/2022062804/5697bf861a28abf838c87c52/html5/thumbnails/4.jpg)
Section 1
Goods and Services (cont.)
• The production of goods and services is controlled by four factors of production.
• Output, or things produced, comes in two forms:
– Goods: physical things, such as books
– Services: work for someone else, such as a haircut
![Page 5: Splash Screen. Section 1-Main Idea Guide to Reading Big Idea An economic system is the way a society organizes the production and consumption of goods](https://reader035.vdocuments.us/reader035/viewer/2022062804/5697bf861a28abf838c87c52/html5/thumbnails/5.jpg)
Section 1
• There are four factors of production:
– Natural resources: “gifts of nature” transformed for use (ex: trees to lumber)
– Labor: human work
– Capital: tools, machinery, and buildings used to make other products
Goods and Services (cont.)
• Capital goods are the result of production
![Page 6: Splash Screen. Section 1-Main Idea Guide to Reading Big Idea An economic system is the way a society organizes the production and consumption of goods](https://reader035.vdocuments.us/reader035/viewer/2022062804/5697bf861a28abf838c87c52/html5/thumbnails/6.jpg)
Section 1
– Entrepreneurs: people who start new businesses
• Good entrepreneurs are innovative
Goods and Services (cont.)
![Page 7: Splash Screen. Section 1-Main Idea Guide to Reading Big Idea An economic system is the way a society organizes the production and consumption of goods](https://reader035.vdocuments.us/reader035/viewer/2022062804/5697bf861a28abf838c87c52/html5/thumbnails/7.jpg)
Section 1
Gross Domestic Product
GDP is the total value of all the final goods and services produced in a country in one year.
![Page 8: Splash Screen. Section 1-Main Idea Guide to Reading Big Idea An economic system is the way a society organizes the production and consumption of goods](https://reader035.vdocuments.us/reader035/viewer/2022062804/5697bf861a28abf838c87c52/html5/thumbnails/8.jpg)
Section 1
Gross Domestic Product (cont.)
• The Gross Domestic Product (GDP) is one way to measure the economy.
• GDP totals final goods and services produced in one year.
– Goods that go into making or doing something are not counted
– Goods that are used up also do not count
![Page 9: Splash Screen. Section 1-Main Idea Guide to Reading Big Idea An economic system is the way a society organizes the production and consumption of goods](https://reader035.vdocuments.us/reader035/viewer/2022062804/5697bf861a28abf838c87c52/html5/thumbnails/9.jpg)
Section 1
• Measuring GDP:
– Finds relative worth of goods
– Helps measure standard of living
– Measures quantity, not quality
– Does not account for depreciation, or loss of value over time
Gross Domestic Product (cont.)
Measuring GDP
![Page 10: Splash Screen. Section 1-Main Idea Guide to Reading Big Idea An economic system is the way a society organizes the production and consumption of goods](https://reader035.vdocuments.us/reader035/viewer/2022062804/5697bf861a28abf838c87c52/html5/thumbnails/10.jpg)
Section 1
• Net domestic product also measures the economy.
– Subtracts production caused by depreciation from GDP
Gross Domestic Product (cont.)
![Page 11: Splash Screen. Section 1-Main Idea Guide to Reading Big Idea An economic system is the way a society organizes the production and consumption of goods](https://reader035.vdocuments.us/reader035/viewer/2022062804/5697bf861a28abf838c87c52/html5/thumbnails/11.jpg)
Section 2-Main Idea
Guide to Reading
Big Idea
The basis of the market economy is voluntary exchange. In the American economy, the exchange usually involves money in return for a good or service.
![Page 12: Splash Screen. Section 1-Main Idea Guide to Reading Big Idea An economic system is the way a society organizes the production and consumption of goods](https://reader035.vdocuments.us/reader035/viewer/2022062804/5697bf861a28abf838c87c52/html5/thumbnails/12.jpg)
Section 2
Economic Sectors and Circular Flow
Resources, goods and services, and money flow in a circular motion among several sectors.
![Page 13: Splash Screen. Section 1-Main Idea Guide to Reading Big Idea An economic system is the way a society organizes the production and consumption of goods](https://reader035.vdocuments.us/reader035/viewer/2022062804/5697bf861a28abf838c87c52/html5/thumbnails/13.jpg)
Section 2
Economic Sectors and Circular Flow (cont.)
• An economic market is the free exchange of products among buyers and sellers.
• Markets operate in a circular motion between different sectors:
– Consumers:
• Earn income in factor markets
• Wages, salaries, tips, rent, interest
![Page 14: Splash Screen. Section 1-Main Idea Guide to Reading Big Idea An economic system is the way a society organizes the production and consumption of goods](https://reader035.vdocuments.us/reader035/viewer/2022062804/5697bf861a28abf838c87c52/html5/thumbnails/14.jpg)
Section 2
– Business sector
• Sells goods and services in product markets
• Uses consumer payments to buy more goods for products
• Smaller than consumer sector
Economic Sectors and Circular Flow (cont.)
Circular Flow of Economic Activity
![Page 15: Splash Screen. Section 1-Main Idea Guide to Reading Big Idea An economic system is the way a society organizes the production and consumption of goods](https://reader035.vdocuments.us/reader035/viewer/2022062804/5697bf861a28abf838c87c52/html5/thumbnails/15.jpg)
Section 2
– Government sector
• Federal, state, and local
• Purchases productive inputs
• Receives revenue from selling services
• Purchases final goods and services
• Second largest sector of economy
Economic Sectors and Circular Flow (cont.)
![Page 16: Splash Screen. Section 1-Main Idea Guide to Reading Big Idea An economic system is the way a society organizes the production and consumption of goods](https://reader035.vdocuments.us/reader035/viewer/2022062804/5697bf861a28abf838c87c52/html5/thumbnails/16.jpg)
Section 2
– Foreign sector
• Both buys and sells
• Usually balances buying and selling
• Small percentage of GDP
Economic Sectors and Circular Flow (cont.)
![Page 17: Splash Screen. Section 1-Main Idea Guide to Reading Big Idea An economic system is the way a society organizes the production and consumption of goods](https://reader035.vdocuments.us/reader035/viewer/2022062804/5697bf861a28abf838c87c52/html5/thumbnails/17.jpg)
Section 2
Promoting Economic Growth
Economic growth occurs when a nation’s total output of goods and services from all economic areas increases.
![Page 18: Splash Screen. Section 1-Main Idea Guide to Reading Big Idea An economic system is the way a society organizes the production and consumption of goods](https://reader035.vdocuments.us/reader035/viewer/2022062804/5697bf861a28abf838c87c52/html5/thumbnails/18.jpg)
Section 2
Promoting Economic Growth (cont.)
• Economic growth occurs when the total output of goods and services increases over time.
• Productivity measures amount of output by certain inputs.
– Rises when output goes up and input stays the same, or output stays the same and input goes down
– Applies to all factors of production
![Page 19: Splash Screen. Section 1-Main Idea Guide to Reading Big Idea An economic system is the way a society organizes the production and consumption of goods](https://reader035.vdocuments.us/reader035/viewer/2022062804/5697bf861a28abf838c87c52/html5/thumbnails/19.jpg)
Section 2
• Productivity improves through:
– Specialization
– Division of labor
– Investment in human capital
Promoting Economic Growth (cont.)
![Page 20: Splash Screen. Section 1-Main Idea Guide to Reading Big Idea An economic system is the way a society organizes the production and consumption of goods](https://reader035.vdocuments.us/reader035/viewer/2022062804/5697bf861a28abf838c87c52/html5/thumbnails/20.jpg)
Section 2
• Economic interdependence is key to our economy
– Bad: Loss of self-sufficiency, affected by problems elsewhere
– Good: Gains in productivity
Promoting Economic Growth (cont.)
• Interdependence has trade-offs:
![Page 21: Splash Screen. Section 1-Main Idea Guide to Reading Big Idea An economic system is the way a society organizes the production and consumption of goods](https://reader035.vdocuments.us/reader035/viewer/2022062804/5697bf861a28abf838c87c52/html5/thumbnails/21.jpg)
A. A
B. B
Section 2
Do you agree that economic interdependence is good for the economy?
A. Agree
B. Disagree
0%0%
![Page 22: Splash Screen. Section 1-Main Idea Guide to Reading Big Idea An economic system is the way a society organizes the production and consumption of goods](https://reader035.vdocuments.us/reader035/viewer/2022062804/5697bf861a28abf838c87c52/html5/thumbnails/22.jpg)
Section 3-Main Idea
Guide to Reading
Big Idea
Free enterprise is the freedom of individuals and businesses to operate and compete with a minimum of government interference or regulation.
![Page 23: Splash Screen. Section 1-Main Idea Guide to Reading Big Idea An economic system is the way a society organizes the production and consumption of goods](https://reader035.vdocuments.us/reader035/viewer/2022062804/5697bf861a28abf838c87c52/html5/thumbnails/23.jpg)
Section 3
Capitalism
The economic system of the United States is known as capitalism, in which private citizens own and use the factors of production to seek a profit.
![Page 24: Splash Screen. Section 1-Main Idea Guide to Reading Big Idea An economic system is the way a society organizes the production and consumption of goods](https://reader035.vdocuments.us/reader035/viewer/2022062804/5697bf861a28abf838c87c52/html5/thumbnails/24.jpg)
Section 3
Capitalism (cont.)
• The economic system of the United States is based on capitalism.
• Capitalism: free markets and private ownership used to seek profits
• The American economy is based on free enterprise
![Page 25: Splash Screen. Section 1-Main Idea Guide to Reading Big Idea An economic system is the way a society organizes the production and consumption of goods](https://reader035.vdocuments.us/reader035/viewer/2022062804/5697bf861a28abf838c87c52/html5/thumbnails/25.jpg)
Section 3
• Features of Capitalism:
– Markets:
Capitalism (cont.)
• Connect parts of the economy
• Local, regional, national, or global
• Set prices
• Consumer sovereignty (“consumer is king”)
![Page 26: Splash Screen. Section 1-Main Idea Guide to Reading Big Idea An economic system is the way a society organizes the production and consumption of goods](https://reader035.vdocuments.us/reader035/viewer/2022062804/5697bf861a28abf838c87c52/html5/thumbnails/26.jpg)
Section 3
– Economic Freedom:
• Choices in jobs and purchases
• Cost—Accepting consequences of actions
Capitalism (cont.)
– Private Property Rights:
• Freedom to own and use property
• Incentive to work, save, invest
![Page 27: Splash Screen. Section 1-Main Idea Guide to Reading Big Idea An economic system is the way a society organizes the production and consumption of goods](https://reader035.vdocuments.us/reader035/viewer/2022062804/5697bf861a28abf838c87c52/html5/thumbnails/27.jpg)
Section 3
– Competition:
• Struggle between buyers and sellers
• Efficient production
• Higher quality products
• More satisfied customers
Capitalism (cont.)
![Page 28: Splash Screen. Section 1-Main Idea Guide to Reading Big Idea An economic system is the way a society organizes the production and consumption of goods](https://reader035.vdocuments.us/reader035/viewer/2022062804/5697bf861a28abf838c87c52/html5/thumbnails/28.jpg)
Section 3
– Profit Motive
• Profit is the amount left after costs have been paid.
• Encourages improvement of own well being
• Responsible for growth of free enterprise system
Capitalism (cont.)
![Page 29: Splash Screen. Section 1-Main Idea Guide to Reading Big Idea An economic system is the way a society organizes the production and consumption of goods](https://reader035.vdocuments.us/reader035/viewer/2022062804/5697bf861a28abf838c87c52/html5/thumbnails/29.jpg)
Section 3
– Voluntary exchange
• Act of freely engaging in market transactions
• Both buyer and seller benefit, but both give up something
Capitalism (cont.)
![Page 30: Splash Screen. Section 1-Main Idea Guide to Reading Big Idea An economic system is the way a society organizes the production and consumption of goods](https://reader035.vdocuments.us/reader035/viewer/2022062804/5697bf861a28abf838c87c52/html5/thumbnails/30.jpg)
A. A
B. B
C. C
D. D
Section 3
0% 0%0%0%
Who do you think benefits most from the free enterprise system?
A. Consumers
B. Business owners
C. Government
D. All the same
![Page 31: Splash Screen. Section 1-Main Idea Guide to Reading Big Idea An economic system is the way a society organizes the production and consumption of goods](https://reader035.vdocuments.us/reader035/viewer/2022062804/5697bf861a28abf838c87c52/html5/thumbnails/31.jpg)
Section 3
History of Capitalism
Capitalism developed gradually in Europe and had a powerful influence on America’s constitutional Framers.
![Page 32: Splash Screen. Section 1-Main Idea Guide to Reading Big Idea An economic system is the way a society organizes the production and consumption of goods](https://reader035.vdocuments.us/reader035/viewer/2022062804/5697bf861a28abf838c87c52/html5/thumbnails/32.jpg)
Section 3
History of Capitalism (cont.)
• Capitalism, as developed in Europe, greatly influenced American’s Framers.
• Adam Smith’s Wealth of Nations
– Published in 1776
– First description of basic economic principles
– “invisible hand”
• Laissez-faire economics
![Page 33: Splash Screen. Section 1-Main Idea Guide to Reading Big Idea An economic system is the way a society organizes the production and consumption of goods](https://reader035.vdocuments.us/reader035/viewer/2022062804/5697bf861a28abf838c87c52/html5/thumbnails/33.jpg)
A. A
B. B
Section 3
Do you think the principle of laissez-faire is a good way to run an economy?
A. Yes
B. No
0%0%
![Page 34: Splash Screen. Section 1-Main Idea Guide to Reading Big Idea An economic system is the way a society organizes the production and consumption of goods](https://reader035.vdocuments.us/reader035/viewer/2022062804/5697bf861a28abf838c87c52/html5/thumbnails/34.jpg)
VS 1
Economic Resources
• The four factors of production (natural resources, labor, capital, and entrepreneurs) provide the means for a society to produce its goods and services.
• Gross Domestic Product (GDP) is the total value of all the final goods and services produced in a country in one year.
![Page 35: Splash Screen. Section 1-Main Idea Guide to Reading Big Idea An economic system is the way a society organizes the production and consumption of goods](https://reader035.vdocuments.us/reader035/viewer/2022062804/5697bf861a28abf838c87c52/html5/thumbnails/35.jpg)
VS 2
Economic Activity
• Productivity relates to the efficient use of resources, and tends to go up when workers specialize in the things they do best.
• Resources, goods and services, and money flow in a circular motion among several sectors, and economic growth occurs when a nation’s total output of goods and services increases.
![Page 36: Splash Screen. Section 1-Main Idea Guide to Reading Big Idea An economic system is the way a society organizes the production and consumption of goods](https://reader035.vdocuments.us/reader035/viewer/2022062804/5697bf861a28abf838c87c52/html5/thumbnails/36.jpg)
VS 3
Capitalism and Free Enterprise• The economic system of
the United States is based on capitalism and free enterprise.
• Important characteristics are markets, economic freedom, competition, private property rights, the profit motive, and voluntary exchange.
![Page 37: Splash Screen. Section 1-Main Idea Guide to Reading Big Idea An economic system is the way a society organizes the production and consumption of goods](https://reader035.vdocuments.us/reader035/viewer/2022062804/5697bf861a28abf838c87c52/html5/thumbnails/37.jpg)
Figure 1
![Page 38: Splash Screen. Section 1-Main Idea Guide to Reading Big Idea An economic system is the way a society organizes the production and consumption of goods](https://reader035.vdocuments.us/reader035/viewer/2022062804/5697bf861a28abf838c87c52/html5/thumbnails/38.jpg)
Figure 2
![Page 39: Splash Screen. Section 1-Main Idea Guide to Reading Big Idea An economic system is the way a society organizes the production and consumption of goods](https://reader035.vdocuments.us/reader035/viewer/2022062804/5697bf861a28abf838c87c52/html5/thumbnails/39.jpg)
TIME Trans
![Page 40: Splash Screen. Section 1-Main Idea Guide to Reading Big Idea An economic system is the way a society organizes the production and consumption of goods](https://reader035.vdocuments.us/reader035/viewer/2022062804/5697bf861a28abf838c87c52/html5/thumbnails/40.jpg)
DFS Trans 1
![Page 41: Splash Screen. Section 1-Main Idea Guide to Reading Big Idea An economic system is the way a society organizes the production and consumption of goods](https://reader035.vdocuments.us/reader035/viewer/2022062804/5697bf861a28abf838c87c52/html5/thumbnails/41.jpg)
DFS Trans 2
![Page 42: Splash Screen. Section 1-Main Idea Guide to Reading Big Idea An economic system is the way a society organizes the production and consumption of goods](https://reader035.vdocuments.us/reader035/viewer/2022062804/5697bf861a28abf838c87c52/html5/thumbnails/42.jpg)
DFS Trans 3
![Page 43: Splash Screen. Section 1-Main Idea Guide to Reading Big Idea An economic system is the way a society organizes the production and consumption of goods](https://reader035.vdocuments.us/reader035/viewer/2022062804/5697bf861a28abf838c87c52/html5/thumbnails/43.jpg)
Vocab1
goods
tangible products that we use to satisfy our wants and needs
![Page 44: Splash Screen. Section 1-Main Idea Guide to Reading Big Idea An economic system is the way a society organizes the production and consumption of goods](https://reader035.vdocuments.us/reader035/viewer/2022062804/5697bf861a28abf838c87c52/html5/thumbnails/44.jpg)
Vocab2
services
work performed by a person for someone else
![Page 45: Splash Screen. Section 1-Main Idea Guide to Reading Big Idea An economic system is the way a society organizes the production and consumption of goods](https://reader035.vdocuments.us/reader035/viewer/2022062804/5697bf861a28abf838c87c52/html5/thumbnails/45.jpg)
Vocab3
factors of production
resources necessary to produce goods and services
![Page 46: Splash Screen. Section 1-Main Idea Guide to Reading Big Idea An economic system is the way a society organizes the production and consumption of goods](https://reader035.vdocuments.us/reader035/viewer/2022062804/5697bf861a28abf838c87c52/html5/thumbnails/46.jpg)
Vocab4
natural resources
gifts of nature that make production possible
![Page 47: Splash Screen. Section 1-Main Idea Guide to Reading Big Idea An economic system is the way a society organizes the production and consumption of goods](https://reader035.vdocuments.us/reader035/viewer/2022062804/5697bf861a28abf838c87c52/html5/thumbnails/47.jpg)
Vocab5
labor
human effort directed toward producing goods and services
![Page 48: Splash Screen. Section 1-Main Idea Guide to Reading Big Idea An economic system is the way a society organizes the production and consumption of goods](https://reader035.vdocuments.us/reader035/viewer/2022062804/5697bf861a28abf838c87c52/html5/thumbnails/48.jpg)
Vocab6
capital
previously manufactured goods used to make other goods and services
![Page 49: Splash Screen. Section 1-Main Idea Guide to Reading Big Idea An economic system is the way a society organizes the production and consumption of goods](https://reader035.vdocuments.us/reader035/viewer/2022062804/5697bf861a28abf838c87c52/html5/thumbnails/49.jpg)
Vocab7
entrepreneurs
individuals who start new businesses, introduce new products, and improve management techniques
![Page 50: Splash Screen. Section 1-Main Idea Guide to Reading Big Idea An economic system is the way a society organizes the production and consumption of goods](https://reader035.vdocuments.us/reader035/viewer/2022062804/5697bf861a28abf838c87c52/html5/thumbnails/50.jpg)
Vocab8
Gross Domestic Product (GDP)
total dollar value of all final goods and services produced in a country during a single year
![Page 51: Splash Screen. Section 1-Main Idea Guide to Reading Big Idea An economic system is the way a society organizes the production and consumption of goods](https://reader035.vdocuments.us/reader035/viewer/2022062804/5697bf861a28abf838c87c52/html5/thumbnails/51.jpg)
Vocab9
standard of living
the material well-being of an individual, group, or nation measured by how well their necessities and luxuries are satisfied
![Page 52: Splash Screen. Section 1-Main Idea Guide to Reading Big Idea An economic system is the way a society organizes the production and consumption of goods](https://reader035.vdocuments.us/reader035/viewer/2022062804/5697bf861a28abf838c87c52/html5/thumbnails/52.jpg)
Vocab10
output
something produced
![Page 53: Splash Screen. Section 1-Main Idea Guide to Reading Big Idea An economic system is the way a society organizes the production and consumption of goods](https://reader035.vdocuments.us/reader035/viewer/2022062804/5697bf861a28abf838c87c52/html5/thumbnails/53.jpg)
Vocab11
innovate
to introduce or create something new
![Page 54: Splash Screen. Section 1-Main Idea Guide to Reading Big Idea An economic system is the way a society organizes the production and consumption of goods](https://reader035.vdocuments.us/reader035/viewer/2022062804/5697bf861a28abf838c87c52/html5/thumbnails/54.jpg)
Vocab12
market
free and willing exchange of goods and services between buyers and sellers
![Page 55: Splash Screen. Section 1-Main Idea Guide to Reading Big Idea An economic system is the way a society organizes the production and consumption of goods](https://reader035.vdocuments.us/reader035/viewer/2022062804/5697bf861a28abf838c87c52/html5/thumbnails/55.jpg)
Vocab13
factor market
a market where productive resources are bought and sold
![Page 56: Splash Screen. Section 1-Main Idea Guide to Reading Big Idea An economic system is the way a society organizes the production and consumption of goods](https://reader035.vdocuments.us/reader035/viewer/2022062804/5697bf861a28abf838c87c52/html5/thumbnails/56.jpg)
Vocab14
product market
a market where producers offer goods and services for sale
![Page 57: Splash Screen. Section 1-Main Idea Guide to Reading Big Idea An economic system is the way a society organizes the production and consumption of goods](https://reader035.vdocuments.us/reader035/viewer/2022062804/5697bf861a28abf838c87c52/html5/thumbnails/57.jpg)
Vocab15
productivity
the degree to which resources are being used efficiently to produce goods and services
![Page 58: Splash Screen. Section 1-Main Idea Guide to Reading Big Idea An economic system is the way a society organizes the production and consumption of goods](https://reader035.vdocuments.us/reader035/viewer/2022062804/5697bf861a28abf838c87c52/html5/thumbnails/58.jpg)
Vocab16
specialization
when people, businesses, regions, and/or nations concentrate on goods and services that they can produce better than anyone else
![Page 59: Splash Screen. Section 1-Main Idea Guide to Reading Big Idea An economic system is the way a society organizes the production and consumption of goods](https://reader035.vdocuments.us/reader035/viewer/2022062804/5697bf861a28abf838c87c52/html5/thumbnails/59.jpg)
Vocab17
division of labor
the breaking down of a job into separate, smaller tasks to be performed individually
![Page 60: Splash Screen. Section 1-Main Idea Guide to Reading Big Idea An economic system is the way a society organizes the production and consumption of goods](https://reader035.vdocuments.us/reader035/viewer/2022062804/5697bf861a28abf838c87c52/html5/thumbnails/60.jpg)
Vocab18
economic interdependence
a reliance on others, as they rely on you, to provide goods and services to be consumed
![Page 61: Splash Screen. Section 1-Main Idea Guide to Reading Big Idea An economic system is the way a society organizes the production and consumption of goods](https://reader035.vdocuments.us/reader035/viewer/2022062804/5697bf861a28abf838c87c52/html5/thumbnails/61.jpg)
Vocab19
sector
a segment or distinct part
![Page 62: Splash Screen. Section 1-Main Idea Guide to Reading Big Idea An economic system is the way a society organizes the production and consumption of goods](https://reader035.vdocuments.us/reader035/viewer/2022062804/5697bf861a28abf838c87c52/html5/thumbnails/62.jpg)
Vocab20
consume
to use up
![Page 63: Splash Screen. Section 1-Main Idea Guide to Reading Big Idea An economic system is the way a society organizes the production and consumption of goods](https://reader035.vdocuments.us/reader035/viewer/2022062804/5697bf861a28abf838c87c52/html5/thumbnails/63.jpg)
Vocab21
input
to contribute an idea or opinion ; to enter data
![Page 64: Splash Screen. Section 1-Main Idea Guide to Reading Big Idea An economic system is the way a society organizes the production and consumption of goods](https://reader035.vdocuments.us/reader035/viewer/2022062804/5697bf861a28abf838c87c52/html5/thumbnails/64.jpg)
Vocab22
capitalism
a system in which private citizens own most, if not all, of the means of production and decide how to use them within legislated limits
![Page 65: Splash Screen. Section 1-Main Idea Guide to Reading Big Idea An economic system is the way a society organizes the production and consumption of goods](https://reader035.vdocuments.us/reader035/viewer/2022062804/5697bf861a28abf838c87c52/html5/thumbnails/65.jpg)
Vocab23
free enterprise
economic system in which individuals and businesses are allowed to compete for profit with a minimum of government interference
![Page 66: Splash Screen. Section 1-Main Idea Guide to Reading Big Idea An economic system is the way a society organizes the production and consumption of goods](https://reader035.vdocuments.us/reader035/viewer/2022062804/5697bf861a28abf838c87c52/html5/thumbnails/66.jpg)
Vocab24
consumer sovereignty
the role of consumer as the ruler of the market, determining what products will be produced
![Page 67: Splash Screen. Section 1-Main Idea Guide to Reading Big Idea An economic system is the way a society organizes the production and consumption of goods](https://reader035.vdocuments.us/reader035/viewer/2022062804/5697bf861a28abf838c87c52/html5/thumbnails/67.jpg)
Vocab25
private property rights
the freedom to own and use our own property as we choose as long as we do not interfere with the rights of others
![Page 68: Splash Screen. Section 1-Main Idea Guide to Reading Big Idea An economic system is the way a society organizes the production and consumption of goods](https://reader035.vdocuments.us/reader035/viewer/2022062804/5697bf861a28abf838c87c52/html5/thumbnails/68.jpg)
Vocab26
competition
the struggle that goes on between buyers and sellers to get the best products at the lowest prices
![Page 69: Splash Screen. Section 1-Main Idea Guide to Reading Big Idea An economic system is the way a society organizes the production and consumption of goods](https://reader035.vdocuments.us/reader035/viewer/2022062804/5697bf861a28abf838c87c52/html5/thumbnails/69.jpg)
Vocab27
profit
the money a business receives for its products or services over and above its costs
![Page 70: Splash Screen. Section 1-Main Idea Guide to Reading Big Idea An economic system is the way a society organizes the production and consumption of goods](https://reader035.vdocuments.us/reader035/viewer/2022062804/5697bf861a28abf838c87c52/html5/thumbnails/70.jpg)
Vocab28
profit motive
the driving force that encourages individuals and organizations to improve their material well-being
![Page 71: Splash Screen. Section 1-Main Idea Guide to Reading Big Idea An economic system is the way a society organizes the production and consumption of goods](https://reader035.vdocuments.us/reader035/viewer/2022062804/5697bf861a28abf838c87c52/html5/thumbnails/71.jpg)
Vocab29
voluntary exchange
the act of buyers and sellers freely and willingly engaging in market transactions
![Page 72: Splash Screen. Section 1-Main Idea Guide to Reading Big Idea An economic system is the way a society organizes the production and consumption of goods](https://reader035.vdocuments.us/reader035/viewer/2022062804/5697bf861a28abf838c87c52/html5/thumbnails/72.jpg)
Vocab30
laissez-faire economics
economics philosophy where government should not interfere in the marketplace
![Page 73: Splash Screen. Section 1-Main Idea Guide to Reading Big Idea An economic system is the way a society organizes the production and consumption of goods](https://reader035.vdocuments.us/reader035/viewer/2022062804/5697bf861a28abf838c87c52/html5/thumbnails/73.jpg)
Vocab31
accumulate
to increase in quantity or size
![Page 74: Splash Screen. Section 1-Main Idea Guide to Reading Big Idea An economic system is the way a society organizes the production and consumption of goods](https://reader035.vdocuments.us/reader035/viewer/2022062804/5697bf861a28abf838c87c52/html5/thumbnails/74.jpg)
Vocab32
dispose
to throw away or discard
![Page 75: Splash Screen. Section 1-Main Idea Guide to Reading Big Idea An economic system is the way a society organizes the production and consumption of goods](https://reader035.vdocuments.us/reader035/viewer/2022062804/5697bf861a28abf838c87c52/html5/thumbnails/75.jpg)
Vocab33
incentive
reward offered to try to persuade people to take certain economic actions
![Page 76: Splash Screen. Section 1-Main Idea Guide to Reading Big Idea An economic system is the way a society organizes the production and consumption of goods](https://reader035.vdocuments.us/reader035/viewer/2022062804/5697bf861a28abf838c87c52/html5/thumbnails/76.jpg)
Help
Click the Forward button to go to the next slide.
Click the Previous button to return to the previous slide.
Click the Home button to return to the Chapter Menu.
Click the Transparency button from the Chapter Menu or Chapter Introduction slides to access the TIME Transparency that is relevant to this chapter. From within a section, click on this button to access the relevant Daily Focus Skills Transparency.
Click the Return button in a feature to return to the main presentation.
Click the Economics Online button to access online textbook features.
Click the Reference Atlas button to access the Interactive Reference Atlas.
Click the Exit button or press the Escape key [Esc] to end the chapter slide show.
Click the Help button to access this screen.
Links to Presentation Plus! features such as Graphs in Motion, Charts in Motion, and figures from your textbook are located at the bottom of relevant screens.
To use this Presentation Plus! product:
![Page 77: Splash Screen. Section 1-Main Idea Guide to Reading Big Idea An economic system is the way a society organizes the production and consumption of goods](https://reader035.vdocuments.us/reader035/viewer/2022062804/5697bf861a28abf838c87c52/html5/thumbnails/77.jpg)
End of Custom Shows
This slide is intentionally blank.