EconomicEconomicss

Supply and Supply and DemandDemand

AgendaAgenda If not done: Collect Gov. handout Econ BooksIf not done: Collect Gov. handout Econ Books Homework: Read pages 26-47, answer Homework: Read pages 26-47, answer

questions 2.1, 2.2, 2.4.questions 2.1, 2.2, 2.4. Americans Thrifty Ways ArticleAmericans Thrifty Ways Article Political CartoonPolitical Cartoon Supply and DemandSupply and Demand How Supply and Demand Impacts goods we How Supply and Demand Impacts goods we

buy!buy! Time for hwk and ProjectTime for hwk and Project ReviewReview Objective: Describe the relationship between Objective: Describe the relationship between

supply and demand.supply and demand.

Supply and Demand Supply and Demand DefinitionsDefinitions

Scarcity:Scarcity: Goods are insufficient to Goods are insufficient to

satisfy people’s wants.satisfy people’s wants. Production:Production: Conversion of resources into Conversion of resources into

products that can be products that can be consumed.consumed.

Goods:Goods: All things people derive All things people derive

satisfaction from.satisfaction from. Services:Services: Mental or physical labor Mental or physical labor

purchased by consumers.purchased by consumers. Opportunity Cost:Opportunity Cost: Something sacrificed to Something sacrificed to

obtain something.obtain something.

Goods Vs Goods Vs Economic GoodsEconomic Goods

GoodsAll things

you derive happiness

From.

Similar

Economic Goods

is a Subset Of

Goods

Economic Goods

Goods derived from scarce resources,

Almost every exampleis an econ-good, and

services.

Scarcity, Choice, Scarcity, Choice, Opportunity CostOpportunity CostScarcity

Because of limited resources choices have too be made!

ChoiceWith every choice in picking

one good over anotheran individual sacrifices

something.

Opportunity CostIs the cost for obtaining

another good that isdesired

QuestionsQuestions What are wants and What are wants and

needs?needs? -Wants is an individual’s -Wants is an individual’s

desires.desires. -Needs are different for -Needs are different for

each person, what you each person, what you need to survive.need to survive.

What is trade-offs?What is trade-offs? To trade one resource for To trade one resource for

another.another. How do you make a PPC?How do you make a PPC? PPC - shows the maximum amount PPC - shows the maximum amount

of goods and services that can be of goods and services that can be produced, for a given level of produced, for a given level of technology and resources.technology and resources.

ReviewReviewWhat is scarcity?What is scarcity?What is Opportunity What is Opportunity Cost?Cost?

What is a want and What is a want and need?need?

How do make a PPC?How do make a PPC?

EconomicEconomicss

Supply and Supply and DemandDemand

AgendaAgenda Homework: Article on Credit and Homework: Article on Credit and

summary.summary. Check hwk/ReviewCheck hwk/Review Article/Cartoons on BankruptcyArticle/Cartoons on Bankruptcy Now StatementNow Statement Credit Web Quest.Credit Web Quest. ProjectsProjects ReviewReview Objective: To evaluate the uses of credit.Objective: To evaluate the uses of credit.

Now Now StatementStatement

How does credit play How does credit play a role in your life a role in your life today? Give today? Give examplesexamples!!

ReviewReview What is credit?What is credit? What is in a credit What is in a credit report?report?

Why do people want good Why do people want good credit?credit?

How do you make a PPC?How do you make a PPC?

EconomicEconomicss

Credit, and Credit, and Supply and Supply and

DemandDemand

AgendaAgenda Homework: None.Homework: None. Check and Review Credit ArticleCheck and Review Credit Article Supply and Demand, Banking, and Supply and Demand, Banking, and

Labor Unions (Notes and Handout)Labor Unions (Notes and Handout) If Time: ProjectsIf Time: Projects ReviewReview Objective: To evaluate the uses of Objective: To evaluate the uses of

Banking, Labor Unions, and to Banking, Labor Unions, and to describe the role of demand in the describe the role of demand in the economy.economy.

The law of demand:The law of demand: There is a negative, or There is a negative, or

inverse, relationship inverse, relationship between the price of between the price of any good or service and any good or service and the quantity demanded.the quantity demanded.

Relative price:Relative price: The price of one The price of one

commodity divided by commodity divided by the price of another the price of another commodity.commodity.

Demand Curve:Demand Curve: A graph of the demand A graph of the demand

schedule. A negatively schedule. A negatively sloped line showing the sloped line showing the relationship of price relationship of price and quantity.and quantity.

Supply:Supply: Shows relationship Shows relationship

between price and between price and quantity supplied of a quantity supplied of a good.good.

Law of Supply:Law of Supply: The higher price of a The higher price of a

good the more good the more businesses will increase businesses will increase their production of it.their production of it.

Supply Curve:Supply Curve: Graphic representation Graphic representation

of a supply curve. Line of a supply curve. Line showing the supply showing the supply schedule, which schedule, which generally slopes generally slopes upward.upward.

Equilibrium:Equilibrium: Situation where quantity supplied Situation where quantity supplied

meets the quantity demanded.meets the quantity demanded. Turn to Turn to page 73page 73 of your book and of your book and

answer question answer question 3-13-1 and find the and find the equilibrium of the amount equilibrium of the amount demanded and supplied.demanded and supplied.

BankingBanking How does banking differ from nation to How does banking differ from nation to

nation?nation? Some nations they are crucial in the Some nations they are crucial in the

economy, while in others it is not.economy, while in others it is not. Duties of the Central Bank:Duties of the Central Bank: Functions for the national gov, services to Functions for the national gov, services to

private banks, and monetary policies.private banks, and monetary policies. What are the parts of the Fed Reserve What are the parts of the Fed Reserve

System:System: Board of Gov-set monetary policy, oversee Board of Gov-set monetary policy, oversee

Fed Banks;Fed Banks; Fed Reserve Banks-furnish Fed Reserve Banks-furnish currency, handle national debt;currency, handle national debt; Fed Open Fed Open Market Committee-Directs buying and selling Market Committee-Directs buying and selling of US assets.of US assets.

Labor UnionsLabor Unions Labor Unions:Labor Unions: Worker organizations that seek economic Worker organizations that seek economic

improvements for employees.improvements for employees. Goals of Unions:Goals of Unions: Wage rate, rationing of jobs, improve Wage rate, rationing of jobs, improve

working conditions.working conditions. Strategies:Strategies: Limiting Entry, etc.Limiting Entry, etc. Benefits Vs Disadvantages:Benefits Vs Disadvantages: Benefits-voice for workers, wages equal, Benefits-voice for workers, wages equal,

etc.;etc.; Disadvantages-profits go down, not Disadvantages-profits go down, not necessary the best person for the job, etc.necessary the best person for the job, etc.

ReviewReview What does the Law of What does the Law of

demand say?demand say? What does the Law of supply What does the Law of supply

say?say? What is in the Federal What is in the Federal

Reserve System?Reserve System? What are Labor Unions?What are Labor Unions?

EconomicEconomicss

Credit, and Credit, and Supply and Supply and

DemandDemand

AgendaAgenda Review Supply and Demand ChartReview Supply and Demand Chart Handout on Monetary Policy, Fiscal Handout on Monetary Policy, Fiscal

Policy, and Taxes Policy, and Taxes Ten Principles of Economics Ten Principles of Economics Click HereClick Here If Time: Work on Mock Election If Time: Work on Mock Election

ProjectsProjects ReviewReview Hwk: Quiz tomorrow (not online) Hwk: Quiz tomorrow (not online)

/Project due Monday by the end of /Project due Monday by the end of class.class.

Monetary PolicyMonetary Policy Transaction Demand:Transaction Demand: Holding money to use in transactions.Holding money to use in transactions. Precautionary Demand:Precautionary Demand: Holding money to meet unplanned Holding money to meet unplanned

expenditures.expenditures. Asset Demand:Asset Demand: Holding Money as a store of value.Holding Money as a store of value. Negative aspect of Holding $?Negative aspect of Holding $? Value decreases!Value decreases!

Monetary PolicyMonetary Policy

Open Market Operations

1.If fedIncreases the #of bonds then

supply of $ increases.

Discount Rate1.Fed increasesrate of banks that borrow

money from it, then they are Less likely to

Borrow.

ReserveRequirements1.Fed increase reserve require.

then less $in circulation.

TaxesTaxes Taxes:Taxes: Payments to the government.Payments to the government. Payroll Taxes:Payroll Taxes: Provide essential funding for Provide essential funding for programs.programs.

Three options:Three options: Raising Taxes, Wage Cap, Raising Taxes, Wage Cap, Cutting Benefits.Cutting Benefits.

Which is the best choice?Which is the best choice?

Fiscal PolicyFiscal Policy Fiscal Policy:Fiscal Policy: Changes in governmental Changes in governmental

expenditures to positively impact expenditures to positively impact the government.the government.

Direct Expenditure Offsets:Direct Expenditure Offsets: Actions taken by the private sector Actions taken by the private sector

to offset government spending.to offset government spending. Supply-side Economics:Supply-side Economics: Creating incentives for individuals Creating incentives for individuals

and firms to increase production.and firms to increase production.

ReviewReview What are negative aspects of What are negative aspects of

holding money?holding money? How is monetary policy How is monetary policy

determined?determined? What are the three options for What are the three options for

paying for governmental paying for governmental expenditures?expenditures?

What is supply-side economics?What is supply-side economics?

AgendaAgenda Homework: None.Homework: None. Study for Quiz-Look over Econ Study for Quiz-Look over Econ

Notes/worksheets-terms (Labor Notes/worksheets-terms (Labor Unions, Law of Supply, Law of Unions, Law of Supply, Law of Demand, Credit, Fiscal Policy, etc.)Demand, Credit, Fiscal Policy, etc.)

QuizQuiz After Quiz finish projectAfter Quiz finish project

Note cards-name handed in MondayNote cards-name handed in Monday PPT on Summer-Drive needs to be donePPT on Summer-Drive needs to be done

AgendaAgenda Homework: None.Homework: None. Check Projects/Collect Note-Check Projects/Collect Note-

CardsCards Review QuizReview Quiz Investment Options ArticleInvestment Options Article Presidents of the USPresidents of the US Electoral CollegeElectoral College If Time: Mock ElectionIf Time: Mock Election

AgendaAgenda Homework: None.Homework: None. The Political Parties of America The Political Parties of America

Web-questWeb-quest Use computers to fill out informationUse computers to fill out information Take Test Take Test http://www.politicalcompass.org/testhttp://www.politicalcompass.org/test

Review Review Click HereClick Here Parties and IssuesParties and Issues If Time: Mock ElectionIf Time: Mock Election ReviewReview

AgendaAgenda Homework: Final Tomorrow Homework: Final Tomorrow

take folderstake foldersMock ElectionMock ElectionFinal Review Game Final Review Game Click HereClick Here

If Time: You Be the JudgeIf Time: You Be the JudgeReviewReview

AgendaAgenda Winner of Mock Election?Winner of Mock Election? Study for ExamStudy for Exam Final ExamFinal Exam

After Exam read:After Exam read:Supreme Court Supreme Court Article/SummaryArticle/Summary

You Be the JudgeYou Be the JudgeReviewReview