Day 1 – Economic Systems (7.E.1.3) Command (communism) Free (capitalism) - Lots of Gov’t involvement - Gov’t makes all decisions - Gov’t owns property - No Profits (Gov’t helps people) - No Competition - Ex. North Korea, Cuba (rare) - Little Gov’t involvement - Individuals Choose - Private property - Profit Driven (make $) - Competition - Ex. Australia Mixed - Gov’t involvement (free < mixed < command) - Individuals & biz make choices - private sector (make money) - Gov’t makes choices - public sector (help people) - Ex. USA (most common economy) Traditional -based on survival -eskimos -zombie apocalypse

7.E.1.1  The student will know:                         o Colonialism                         o Imperialism                         o Globalization                         o Interdependence How do the terms connect to Economics?

Making Economics EASY for nations or HARD 7.E.1.2 Explain the implications of economic decisions in national and international affairs  The student will know:  Key terms:                        o OPEC                        o NAFTA                        o G20                        o WTO                        o EU                        o OAS  Making Economics EASY for nations or HARD

Plan = coordinate the policies of the oil-producing countries OPEC Organization of the Petroleum Exporting Countries Cartel Agreement between competing companies to control prices illegal in the US Plan = coordinate the policies of the oil-producing countries Control Supply IF they lower the supply THEN the price goes up!

Oil $10 Supply and Demand Supply Price $15 $10 $5 1 2 3 4 demand Quantity Sold

Oil Supply goes up Supply Price $15 $10 $5 1 2 3 4 demand Quantity Sold

Oil Supply goes down Supply Price $15 $10 $5 1 2 3 4 demand Quantity Sold

+ $1 NAFTA FREE TRADE Pro: Goods are cheap Con: Lose jobs in USA North American Free Trade Agreement NO Tariffs (taxes on importing/exporting) FREE TRADE Pro: Goods are cheap Con: Lose jobs in USA $6 $7 $5 + $1

G20  20 major economies Leaders meet – monitor the economy (mainly banking) Often criticized for only helping wealthy nations

WTO World Trade Organization Make the world’s economy better Help nations get along economically Make sure businesses are fair economics

EU European Union Created After World War II Countries who trade with one another become economically interdependent more likely to avoid conflict Peace and Business in Europe People can travel freely between countries Single Currency (Euro)

OAS Organization of American States Work together for peace, security, and development