What are the 4 characteristics of money? Bell Work What are the 4 characteristics of money? What 3 purposes does money serve?

In Lak’ech by Luis Valdez Tu eres me otro yo Si te hago daño a ti, Me hago daño a mi mismo Si te amo y respeto Me amo y respeto yo You are my other me If I do harm to you, I do harm to myself If I love and respect you I love and respect myself

What are the 4 characteristics of money? Bell Work What are the 4 characteristics of money? What 3 purposes does money serve?

Chapter 10 Quiz You may use your notes, Guided Reading Activities and/or the review activity from yesterday.

Evaluating the Economy How do we determine the economic and social well being of a country?

Goods Produced Divide up the play dough into equal portions for each member of your group Each person should produce any 2 of the following items in about 5 minutes: Shirt Calculator Telephone Doll Book Basket of apples

How much did we produce? Good Number Produced Price Revenue Shirt Calculator Telephone Doll Book Basket of apples

Goods Produced Divide up the play dough into equal portions for each member of your group Each person should produce any 1 of the following items in about 5 minutes: Shirt Calculator Telephone Doll Book Basket of apples

How much did we produce? Good Number Produced Price Revenue Shirt Calculator Telephone Doll Book Basket of apples

Reflection What impact do you think an increase in GDP might have on the well being of the people in a country?

Bell Work Based on the work we did Friday (the playdough activity), how would you define Gross Domestic Product (GDP)?

In Lak’ech by Luis Valdez Tu eres me otro yo Si te hago daño a ti, Me hago daño a mi mismo Si te amo y respeto Me amo y respeto yo You are my other me If I do harm to you, I do harm to myself If I love and respect you I love and respect myself

Bell Work Based on the work we did Friday (the playdough activity), how would you define Gross Domestic Product (GDP)?

2 3 4 5 6 Total A 9 17 15 10 16 67 B 11 7 32 C 8 26 D 1 F AVG 86.0 88.4 85.7 82.2 79.7 84.3

The Federal Reserve System was created in _______ to standardize currency and banking practices in the United States. 1861 1913 1863 1933

Accessing funds in time deposit accounts is restricted. required on demand. forbidden. limited to bank employees.

Crash Course - Macroeconomics https://www.youtube.com/watch?v=d8uTB5X orBw

GDP—The Measure of National Output Macroeconomics uses a comprehensive set of measures in the National Income and Product Accounts (NIPA). The most comprehensive measure of national output is gross domestic product (GDP). To get current GDP, multiply all of the final goods and services produced in a 12-month period by their prices, and then add them up. Real GDP is measured with a set of constant base year prices. GDP per capita is determined by dividing the real GDP by the population. GDP does not provide information about composition of output, quality of life impacts, nonmarket activities, or improved product quality. GDP does not measure welfare, but appears to contribute to our well- being.

Net national product (NNP) is the GNP minus depreciation. Measures of National Income Gross national product (GNP) is a measure of the country’s total national income—the dollar value of all finals goods, services, and structures produced in one year with labor and property supplied by a country’s residents. Net national product (NNP) is the GNP minus depreciation. National income (NI) is the income that is left after all taxes except corporate profits tax are subtracted from the NNP. Personal income (PI) equals the total amount of income that goes to consumers before income taxes are subtracted. Disposable personal income (DPI) is the total income that goes to consumers after personal income taxes are subtracted.

Economic Sectors and Circular Flows Economic sectors include the consumer, investment, government, and net foreign sectors. The consumer sector consists of all the people who live in households and receives its income in the form of disposable personal income. The investment sector consists of proprietorships, partnerships, and corporations that produce the nation’s output. The government, or public, sector includes all local, state, and federal levels of government. The net foreign sector includes all consumers and producers outside the United States. The output-expenditure model says that the GDP is equal to the sum of aggregate demand for output by the consumer, investment, government, and net foreign sectors.

GDP=C+I+G+(X-M)

What is one way GDP could be measured. A What is one way GDP could be measured? A.Multiply all goods produced in a 12-month period by their prices, then add them up B.Multiply all goods and services produced in a 12- month period by their prices, then add them up C.Multiply all services produced in a 12-month period by their prices, then add them up D.Multiply all goods, services, and structures produced inside our national boundaries in a 12-month period by their prices, then add them up

Which product is NOT considered an intermediate product. A Which product is NOT considered an intermediate product? A.Replacement tires you buy from a tire store B.Flour a baker buys C.Tires on your new car that you just picked up at the dealership D.Textiles a clothing company buys

Which service is a nonmarket transaction. A. Hiring a lawn service B Which service is a nonmarket transaction? A.Hiring a lawn service B.Editing your boss’s letter C.Fixing your sink D.Asking your mechanic to fix a flat tire

How is GDP adjusted for inflation. A How is GDP adjusted for inflation? A.It is computed using prices as they actually existed in the years being compared. B.It is computed in different years using a common set of fixed base-period prices. C.It is computed by finding the average prices in one month and then multiplying by 12. D.All of these answers are correct.

Why is it important to compute real GDP. A Why is it important to compute real GDP? A.To see if there is an improvement in product quality B.To keep track of the base-year statistic C.To know more about the composition of total output D.To find out if there is a change in the actual number of goods, services, and structures produced from one year to the next

What is the difference between Gross Domestic Product (GDP) and Gross National Product (GNP)? A.GDP is measured before inflation; GNP is measured after inflation. B.GDP is an annual measure of total output produced; GNP is a measure of total annual income earned by a country's citizens. C.GDP is a measure of total output before depreciation is computed; GNP is a measure after depreciation is computed. D.GNP is an annual measure of total output produced; GDP is a measure of total annual income earned by a country's citizens.

How many sectors, or different parts, are included in a "closed" economy? A.One; the consumer sector B.Two; the consumer sector and business sector C.Three; the consumer, business, and government sectors D.Four; the consumer, business, government, and foreign sectors

How does the government sector get its income. A How does the government sector get its income? A.Corporate income taxes and indirect business taxes B.Exports to countries outside the United States C.Social Security contributions and individual income taxes D.A and C

What is the basic unit of the consumer sector. A. A family B What is the basic unit of the consumer sector? A.A family B.Nonrelated people C.A household D.A couple

What does the (X – M) stand for in the output expenditure model, GDP = C + I + G + (X – M)? A.Imports minus exports B.Exports minus imports C.Exports minus foreign taxes D.Imports minus foreign taxes

Reflection Which 3 measures of our economy do you think are most important to look at and why?

Bell Work How do we know how many people live in our country? Do you think our population is increasing or decreasing? Do you think this change is a good thing or a bad thing? Why?

In Lak’ech by Luis Valdez Tu eres me otro yo Si te hago daño a ti, Me hago daño a mi mismo Si te amo y respeto Me amo y respeto yo You are my other me If I do harm to you, I do harm to myself If I love and respect you I love and respect myself

Bell Work How do we know how many people live in our country? Do you think our population is increasing or decreasing? Do you think this change is a good thing or a bad thing? Why?

Productivity and Growth https://www.youtube.com/watch?v=UHiUYj5 EA0w

Population in the United States Every 10 years, an official census is taken to count people in the United States. The Census Bureau was formed in 1902 and now works year round. Although the population of the United States has grown since 1790, the rate of growth has slowly declined. In the 1970s, the population began to shift toward the western and southern parts of the United States. The center of population has moved from 23 miles east of Baltimore, Maryland, in 1790 to 2.7 miles northeast of Plato, Missouri, in 2010. Population growth and shifts in population can put more or different demands on existing resources.

Women tend to outlive men. Projected Population Trends As more baby boomers reach their retirement years, they will place a heavy burden on the younger and relatively smaller working population. Women tend to outlive men. The Census Bureau makes projections for racial and ethnic groups. The three major factors that affect population growth are fertility rate, life expectancy, and net immigration. As the age composition of the future population changes, needs and demands will change as well.

What is the complete count of a population, including place of residence? A.Net immigration B.Demographer C.Infrastructure D.Census

The center of population A The center of population A.has been moving in a northwestern direction since 1790. B.is contracting because the average family size has slowly been shrinking. C.is the point where the country would balance if it could be laid flat and everyone weighted the same. D.is now about 23 miles east of Baltimore, Maryland.

What has been a major population change since the first census in 1790 What has been a major population change since the first census in 1790? A.The census shows a steady trend toward larger households. B.The population has grown considerably while the rate of growth has slowly declined. C.After a brief decline at the end of World War II, the rate of increase continued to rise slowly but steadily. D.After a brief decline at the end of World War II, the rate of increase continued to rise rapidly.

Which of the following is NOT one of the three major factors that affect population growth? A.Infrastructure B.Fertility rate C.Life expectancy D.Net immigration

By 2050 the Census Bureau projects A By 2050 the Census Bureau projects A.the Hispanic population will become the largest component of the total population. B.the Asian and Hispanic portions of the population will decrease. C.the Asian population will become the largest component of the total population. D.the white non-Hispanic population is expected to remain a majority of the total population at just under 50 percent.

The fertility rate now is A The fertility rate now is A.just slightly below the replacement population rate. B.about equal to the net immigration rate. C.just barely larger than the replacement population rate. D.barely larger than the dependency ratio.

Why is the rate of population growth declining. A Why is the rate of population growth declining? A.Because the dependency ratio is increasing B.Because of the high replacement population rate C.Because of changes in the fertility rate and declining household sizes D.Because of the increased life expectancy rate

What effect will the slowing rate of population growth and an increase in longevity have on the U.S. economy? A.The dependency ratio will increase. B.The replacement population rate will increase. C.The replacement population rate will decrease. D. The dependency ratio will decrease.

What is the difference between urban population and rural population? A.There is no difference. B. The rural population consists of people living in incorporated cities, towns, and villages with 2,500 or more inhabitants. The urban population consists of people not living in urban areas, including sparsely populated areas along the fringes of cities. C. The urban population consists of people living in incorporated cities, towns, and villages with 2,500 or more inhabitants. The rural population consists of people not living in urban areas, including sparsely populated areas along the fringes of cities. D.The difference is determined by the number of shopping centers in any given area, adjusted for the number of public elementary and middle schools.

Which of the following is NOT true of the baby boom. A Which of the following is NOT true of the baby boom? A.People born during this time span created a significant bulge in the population pyramid. B.It includes the historically high birthrate years in the United States from 1920 to 1945. C.It includes the historically high birthrate years in the United States from 1946 to 1964. D.Soon, more and more baby boomers will reach their retirement years and want to collect pensions, Social Security, and Medicare benefits.

Reflection What effects do you think an aging population will have on the economy?

What might be some of the reasons why people are poor? Bell Work What might be some of the reasons why people are poor?

In Lak’ech by Luis Valdez Tu eres me otro yo Si te hago daño a ti, Me hago daño a mi mismo Si te amo y respeto Me amo y respeto yo You are my other me If I do harm to you, I do harm to myself If I love and respect you I love and respect myself

What might be some of the reasons why people are poor? Bell Work What might be some of the reasons why people are poor?

Poverty People are classified as living in poverty if their incomes fall below a predetermined level called the poverty threshold. The most recent official poverty rate was 15.0 percent, which is considerably lower than it was in the early 1960s when President Johnson unleashed his “war on poverty.” A Lorenz curve is used to show how much the actual distribution of income differs from an equal distribution among the five quintiles.

Incomes vary for at least nine reasons: Wealth Education Reasons for Income Inequality Incomes vary for at least nine reasons: Wealth Education Tax Law Changes Decline of Unions More Service Jobs Advances in Technology Monopoly Power Discrimination Changing Family Structure

Antipoverty Programs Income assistance includes programs such as Temporary Assistance for Needy Families (TANF) and Supplemental Security Income (SSI). General assistance includes the Supplemental Nutrition Assistance Program (food stamps) and Medicaid. Social services include child abuse prevention, foster care, and job training. The Earned Income Tax Credit (EITC) provides federal tax credits and cash to low-income workers. Enterprise zones are free of tax laws and encourage depressed areas to grow. Workfare is a program in which welfare recipients work for their benefits. The proposed negative income tax would make cash payments to certain groups below the poverty threshold.

Income Distribution in America https://www.youtube.com/watch?v=QPKKQn ijnsM

Income and Wealth Inequality https://www.youtube.com/watch?v=0xMCWr 0O3Hs

To determine someone’s eligibility for certain antipoverty programs, government officials rely directly on A.the poverty guidelines. B.the poverty threshold. C.poverty trends. D.the Lorenz curve.

About what percentage of Americans live in poverty. A. 5 percent B About what percentage of Americans live in poverty? A.5 percent B.10 percent C.15 percent D.20 percent

What does the Lorenz curve show. A. The poverty rate B What does the Lorenz curve show? A.The poverty rate B.Income distribution C.Discrimination D.Educational attainment

Since the mid-1970s, poverty has been A. ignored by politicians. B Since the mid-1970s, poverty has been A.ignored by politicians. B.remarkably difficult to solve. C.decreasing in the United States. D.relatively difficult to measure.

In general, education is correlated to income A. in no way. B In general, education is correlated to income A.in no way. B.negatively. C.positively. D.variously.

Which of the following is associated with low wages. A Which of the following is associated with low wages? A.Higher education B.Monopoly power C.Union membership D.Service industry jobs

What has led to increasing incomes for doctors. A. Union fees B What has led to increasing incomes for doctors? A.Union fees B.Monopoly power C.The Lorenz curve D.Advances in technology

What is welfare? A.A general term for economic and social assistance B.Another name for food stamps C.A specific federal program D.The service industry

“Food stamps” are part of what federal antipoverty program. A “Food stamps” are part of what federal antipoverty program? A.Medicaid B.TANF C.SNAP D.Social Security

What do enterprise zones directly provide. A. Aid to needy families B What do enterprise zones directly provide? A.Aid to needy families B.Income for those in poverty C.Jobs for the unemployed D.Tax breaks for business

Chapter 12 Review/Practice Answer questions 1 – 16 on pp. 361-362 (Skip 8) Extra Credit questions 21 – 23 on p. 362

How do you feel like you did on today’s quiz and why? Reflection How do you feel like you did on today’s quiz and why?