EOC Economics Review

Command Economy Market Economy Mixed Economy Tuesday, December 6, 2016 Using the Venn Diagram below to compare and contrast different economic systems by doing the following: Command Economy Market Economy Mixed Economy Explain how they answer the three basic economic questions: What to produce? How to produce? For whom to produce? (Use the key terms: private ownership, profit motive, consumer sovereignty, competition, and government regulation.) Explain how do these systems meet the broad social and economic goals of freedom, security, equity, growth, efficiency, and stability. Do this now. We will discuss this 5 mins after the bell rings!

Using the Venn Diagram below to compare and contrast different economic systems by doing the following: Command Economy Production and distribution of goods are controlled by government regulation Often private ownership is not allowed and the market does not operate under consumer sovereignty. Market Economy Production and distribution of goods controlled by the market The market is profit motivated and private ownership is encouraged. Desires and needs of consumers control the output of producers. (consumer sovereignty). Mixed Economy Production and distribution of goods controlled by market and government regulation Explain how they answer the three basic economic questions: What to produce? How to produce? For whom to produce? (Use the key terms: private ownership, profit motive, consumer sovereignty, competition, and government regulation.) Explain how do these systems meet the broad social and economic goals of freedom, security, equity, growth, efficiency, and stability. Government regulation Private ownership profit motivated consumer sovereignty competition

Fundamental Economic Concepts (20% of EOC) Scarcity and opportunity cost Comparison of marginal benefit and marginal cost Benefits of specialization Types of economic systems Role of regulatory agencies Investment and economic growth

Key Vocab: Resource Scarcity Allocate Opportunity Cost Marginal cost “Two roads diverged in a yellow wood, And sorry I could not travel both And be one traveler…” ~Robert Frost Key Vocab: Resource Scarcity Allocate Opportunity Cost Marginal cost Marginal benefit Specialization

Role of Regulatory Agencies “The existence of numerous government regulatory agencies is yet another way that the United States is not a purely capitalist society. “ “Government regulation takes many forms. Overall, the goal of the government is to provide for the health and safety of its citizens and its businesses. Some regulation protects citizens from corporate abuse. Other government regulations help businesses recover from external problems by offering money to help offset unforeseen disaster.”

Investment and Economic Growth

What could cause the PPC shift in each of these cases?

Circle Flow Diagram Wednesday, December 7, 2016 What is the correct sequence of events? Paige bought a new CD at Target Households-Flow of $-Product Market Jacob was hired at Cabellas. Target hired 5 employees for the summer. Kroger completed payroll for the week. Pete was paid for doing a job well.

Microeconomics Studies the interaction of people and businesses (firms) within a market Circular flow (diagram) of goods and resources Laws of Supply and Demand Markets and prices Types of business organizations and market structures

How do the following affect price? Cost of inputs/resources Supply and Demand How do the following affect price? Cost of inputs/resources Changes in technology Changes in prices of other goods Substitute goods Complementary goods Changes in income Changes in preference Key Vocab: Law of Supply Law of Demand Equilibrium price Equilibrium quantity Price ceiling (shortage) Price floor (surplus) Price elasticity Sole proprietorship Partnerships Corporations Monopoly Pure competition Oligopoly (cartel)

Macroeconomics https://www.youtube.com/watch?v=d8uTB5XorBw&index=5&list=PL8dPuuaLjXtPNZwz5_o_5uirJ8gQXnhEO

Answer the following questions using the table: Thursday, December 8, 2016 Answer the following questions using the table: How much is $2 US equivalent to in each of the following currencies? a. British pound b. Danish krone c. Euro d Japanese yen 2. How much of each of the following currencies would I get if I exchanged $5 US? a. Mexican Peso b. Swiss franc c. Thai baht Who would benefit if the exchange rate of the US dollar increased? Who would benefit if the exchange rate of the US dollar decreased?

International Economics Advantages of International Trade Issues Concerning International Trade Exchange rates https://www.youtube.com/watch?v=geoe-6NBy10&list=PL8dPuuaLjXtPNZwz5_o_5uirJ8gQXnhEO&index=15

Advantages of International Trade Absolute advantage When two (or more) countries produce the same goods, one will ALWAYS have a comparative advantage Balance of trade Balance of payments

Issues concerning Economic Trade Barriers to Trade Tariff Quota Embargo Standards Subsidy Exchange rate: appreciate and depreciate

Compare and contrast the following kinds of income tax: Friday, December 9, 2016 Compare and contrast the following kinds of income tax: Progressive tax Regressive tax Proportional tax 2. Name as many other kinds of taxes as you can.

Personal Finance Economics Personal spending and saving Role of financial institutions How monetary and policy issues affect individuals Costs and benefits of credit Protecting against financial loss Workers in the marketplace

Federal Reserve https://www.youtube.com/watch?v=1dq7mMort9o&list=PL8dPuuaLjXtPNZwz5_o_5uirJ8gQXnhEO&index=10

Types of Financial Institutions Bank Credit Union Savings and Loan Payday Loan Company Vocab- bonds, stocks, mutual funds, savings, credit worthiness, insurance

Real Wages and Inflation

Simple vs. Compound Interest