APK: Activation of Prior Knowledge Write at least 3-5 sentences describing a time when… your life was very good or very bad and all of the sudden your life changed in the opposite direction. _____________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________ Question of the Day Why do you believe the United States’ economy is healthy or unhealthy? [Base your answer on what you hear/read on the news or how easy it is get a high paying job.]

How can we tell if an economy is healthy? By looking at… Gross Domestic Product (GDP): the value of all the goods and services produced in a country in a year If GDP is high, then… If GDP is low, then… Consumer Price Index: lists the average price of individual products in the US Employment Can you think of other factors we could consider?

Healthy or unhealthy? H or UH

How does the “health” of the economy change over time? THE BUSINESS CYCLE: the natural change in health of the economy from high to low (goes up and down regularly) Silly cartoon: http://www.youtube.com/watch?v=28Ejh7ylDbk&feature=related

Business/Economic Cycle PEAK EXPANSION TROUGH CONTRACTION/RECESSION

What is the difference between a recession and a depression? Recession= slowing of the economy with some job losses Depression= large numbers of people out of work, very long and severe drop in economy Why did this happen? Roaring 20’s….(where is it on the business cycle?) http://www.youtube.com/watch?v=3svvCj4yhYc Great Depression: Is this what our world looks like now? Where is this on the business cycle?http://www.youtube.com/watch?v=4n9mCcpatig

Talk, think and write about it…. Could the US go into a Depression again? Where on the business cycle is a country the healthiest? Where is a recession? Where is a depression?

Increase in manufacturer’s new orders Decrease in building permits Sample HEALTHY UNHEALTHY Stock market rises Increased employment Low inflation Increase in manufacturer’s new orders Decrease in building permits Decrease in personal income Increased unemployment

Where do these indicators belong Where do these indicators belong? Write the points on your sheet in the “HEALTHY” or “UNHEALTHY” box. You may use more than one word in the boxes if you run out of space. HEALTHY UNHEALTHY Word bank-Recession, depression, expansion, trough, peak, contraction, China, United States, Brazil.

Mid-lesson Question of the Day How does the movement of resources (workers, oil, water, capital, etc.) influence our economy?

Human Resources Migrant workers: move around to follow work. Ex. agricultural workers move around the country to pick crops Immigrants: come to the US to find work Outsourcing: when another company (often in another country) manages part of a company’s operations (like customer service, IT) (Ex. Indian call centers, Chinese factories) “Hello my name is Peggy” https://www.youtube.com/watch?v=-Lzz8KER520 What is the problem with Peggy? Downsizing: decrease number of workers to lower costs and increase profits

Capital Resources Businesses locate their companies where profits can be maximized. (Example: cheap labor, high demand for product) Many companies have found it profitable to locate their headquarters in a central location. Research Triangle Park: medical research ground near Durham, Raleigh, and Chapel Hill Silicon Valley: in CA, lots of computer and tech companies (ex. Microsoft, Apple, Dell, HP, etc.) Rust belt: Car companies have moved to the Sunbelt or overseas because the labor is cheaper. Sun belt: Many companies have moved here because the labor and taxes is/are cheaper

Label the map with a symbol explain the significance of each symbol you place near each Rust Belt Silicon Valley NC Research Triangle Sun Belt

Check your knowledge: T/F, correct or rewrite the statement if you believe it is false! As the stock market improves, the business cycle is likely to be entering a period of contraction. The United States GDP might include Toyota cars made in North Carolina. A depression is the lowest point of any recession. During expansion, you might see increased unemployment. A contraction in the business cycle is when the economy is starting to slow down and people are buying fewer goods and services. Outsourcing is when a company uses goods or services supplied by someone outside the company or country. When companies decrease their workforces and no longer hire new workers, this is called contracting.