Unit 1: Economics

By: Mr. Washington

Today’s Schedule:

• Definitions• Understanding Economics (23 Minutes)• Exit-slip• Wants and Needs (worksheet)• Goods and Services (worksheet)

– I can explain the three types of resources and give examples of each.

– I can explain different aspects of Economics (key terms).

Understanding Economics 23:22

• Economics--How people use what they have to get what they need and want

• Need--Something we can’t live without

• Want--Something we would like to have

• Natural Resources--Things in nature (trees, coal, iron)

• Human Resources--Work people do (teaching, cutting hair)

• Capital Resources--Things we use to make or get something (machines, tools, money, skills)

• Good--Something made by people (cars, clothing)• Service--Something done by people (cutting hair,

teaching)

• Manufacturing--Making things

• Inflation--The amount of money and the price of goods both increase

• Scarcity--Not enough

• Capital--Money or property that is used to earn more money

• Supply--A resource from which a person or place can be provided with the necessary amount of that resource

• Demand--Economic principle that describes a consumer's desire and willingness to pay a price for a specific good or service

Supply and Demand 3:16

• Opportunity Cost--What you give up to have something else

• Entrepreneur--Someone who takes a great risk to start a new business or introduce a new product (Bill Gates)

Exit-slip

•Explain the law of supply and

demand.

Today’s Schedule:

• Do now• Economics Systems• Exit-slip• Economies (worksheet)• Economics Around the World (worksheet)- in class• Economic Systems Writing (worksheet)- in class

– I can explain the United States Economic System. (Capitalism)

– I can explain the four different types of economies and compare/contrast them.

Do Now:

•Describe the three types of resources

in Economics.

• Specialization--Becoming very good at doing something

• Interdependence--People depend on each other for goods and services

What determines our "standard of living?"

• How much money a person has to spend on food, clothing, and shelter, as well as the kind of medical care and education

• How well a country uses its resources determines the standard of living its citizens enjoy

• American Dream--The belief (dream) that you can achieve your dreams with hard work

The Future of the American Dream 5:38

• Economic System--How a country uses its resources to provide

goods and services for its people

Traditional Economy• People do what has always been done• Little economic growth• Use of primitive tools and methods to harvest food • Found in rural areas--third world countries

Bengal: Country in west India that still functions as a traditional economy.

Command Economy

• Most communist countries have command economies (China)

• Supply and price are controlled by the government

• Government decides how things are produced and distributed

• Sometimes known as a "centrally planned economy"

• In this type of economy, the government controls all products and services. Citizens have little motivation because they have no say in what they make.

Market Economy

• People are free to produce and consume products • Based on the interaction of market forces (supply

and demand)• Free of governmental influence

Mixed Economy

• A combination of command and market economies • The government owns important industries such as

electric companies and railroads but leaves some decisions up to the people (UNITED STATES)

• Capitalism--Economic system practiced in the United States. It is a type of mixed economy in which individuals are free to invest money in order to make more money. Competition is one of the key factors of Capitalism

• Capitalist--Believe competition is important for a healthy economy

Specialization (exit-slip) • Dustin and Laura have started a little business in

their basement. They are making beautiful handmade skateboards. Business is great but they are having a hard time filling all the orders.

A Explain two advantages from going from handmade to assembly line

B. Explain two disadvantages from going from handmade to assembly line

Today’s Schedule:

• review unit• Money• Exit-slip• How Money is Made (worksheet)• Getting into the Economic Picture (worksheet)

– I can explain how money drives the economy.

Exit-slip

•Define the 4 types of Economies and the U.S. Economic

System.

Today’s Schedule:

• Money Activity

Money Activity• Everybody starts out with $5.00. • Take turns drawing cards, either add or

subtract the amount on the card. • If you’re total goes below zero, the other players gets

$20.00 from the bank and you start over at zero on your next turn

• Keep drawing cards until you run out, the player with the most money after the cards run out wins.

• If time allows, you can play another game until I say clean up.

Today’s Schedule:

• Quiz (Do now)• Pass out study guide• Greed (38 Minutes)

Today’s Schedule:

• Take up study-guide• Test

Today’s Schedule:

• Open Response Practice• RAP

Economic Systems Open Response

Each country abides by one of the four economic systems in order to provide for the needs and wants of its people.

A) Identify the four major economic systems and how they function.

The four major economic systems are…

In a ______________ economy…

B) Describe the economic system practiced in the U.S.

In the United States of America we practice a Mixed Economy. A type of Mixed Economy is Capitalism. Capitalism is…

Today’s Schedule:

• Take up folder• Open Response