F/T, 10/25-29 After documenting your homework (on board), turn off and put away your electronic device. Organize your project to be stapled as follows: paper (double check the order of pages so first page is on top) map with side having all/most of the info. facing up Works Cited *If you emailed the paper and/or WC, just get what you have out, and if you have two things, order them as outlined above.* **If you DO NOT have your map OR your WC, your grade will be better if you turn in what you do have. If you are missing both, your grade will be better if you turn them in tomorrow (next calendar day) AS LONG AS they’re done correctly.**

#____: Economic Vocab. Read each word and its definition, then think of an example. All you need to write in your notebook is the word and your example. goods—objects that can be bought or sold service—an activity or action that can be bought or sold producer—a person, group, or business that makes or sells goods or services government regulation—any law about how to make, buy, or sell a good or service

What is economics? A social science concerned with description and analysis of the production, distribution, & consumption of goods and services. If time permits or for homework, students may keep a vocabulary journal throughout this lesson because it is heavy on terminology relevant to economics. Production Distribution Consumption Goods and Services ©2012, TESCCC

ECONOMIC SYSTEMS An economic system addresses the following questions: Who determines what kind & how much to produce? Who determines how to produce & sell goods? Who determines the prices for goods & services?

Economic Systems Communism Capitalism Socialism Free Market Subsistence Agriculture Farmers grow enough for their family. Communism Capitalism Economic Systems Free Market Free Enterprise Controlled Economy Socialism Government Control Public Ownership (land and/or natural resources Low degree of government control ©2012, TESCCC

ECONOMIC SYSTEMS As we discuss these, please remember that these are general descriptions. Few, if any, countries in the world are purely any one system.

Traditional Economy Goods & services traded w/out exchanging money; also called barter. Most people are engaged in subsistence agriculture—growing enough food to feed their own families. Most people live in rural areas; very few middle class or wealthy people ex. many countries in Africa; rural areas in Latin America & Asia; Inuit in Canada; aborigines in Australia

Command Economy Production of goods & services is determined by a central government, which usually owns the means of production. Also called planned economy. Linked with communism. gov’t officials typically have the most power & wealth; frequent shortages of goods ex. Cuba, North Korea

Socialist Economy Some industries, typically those seen as benefiting society as a whole such as energy, transportation, communication, & health care, are owned & operated by the gov’t. Private ownership of business is allowed. large middle class; gap between rich & poor; powerful unions protect workers ex. Canada, Australia, many W. European countries

Market Economy Production of goods & services is determined by consumer demand; also called capitalism or a free enterprise system. middle class; gap between rich & poor ex. United States

DO NOW: IN PAIRS/TRIOS, COMPLETE THE PROCESSING ACTIVITY (separate handout) USING THESE NOTES.

Levels of Economic Activity

ex. farming, mining, logging, fishing little to no literacy required Primary definition–extraction of natural resources or direct harvesting of goods with no processing or manufacturing ex. farming, mining, logging, fishing little to no literacy required A majority of citizens are engaged in primary economic activity in developing countries.

Secondary definition–adding value to materials by changing their form ex. sewing; turning petroleum into gasoline; cottage industry=manufacturing in a home rather than a factory low to medium level of literacy required developing & underdeveloped; work is often outsourced by companies in a developed country

definition—providing business or professional services Tertiary definition—providing business or professional services ex. teaching, retail, professional artists, attorney, doctor medium to very high literacy required underdeveloped, developed

Quaternary definition– Researching, collecting, storage, exchange, and dissemination of information and data ex. college professors, information technology, research scientists very high level of literacy required developed

DO NOW in pairs/trios: 1. You will be given a natural resource or good. 2. Write the level of economic activity & at least one complete sentence describing a job or economic activity that would happen at the primary, secondary, & tertiary levels involving that good. You are NOT doing quaternary. 3. Be as specific as possible. EXAMPLE—DAIRY COW: primary—Farmer Joe raises and milks the cow. secondary—Borden workers pasteurize and package the milk for sale. tertiary—Lisa C. at Whole Foods sells the milk to the consumer.