Intro to

Lesson 1

Intro. Assignment -Lesson 1 Make a list of 10 things you would buy if money was no object. Put a check mark next to items that you picked in order to survive. On your list put a X by the top 2 things you would want. Assume you had money to only buy 1 of those items. Which do you choose and why?

Basic Economic Principles 1. People want stuff 2. Resources we have to meet those “wants” are limited. 3. This scarcity is what forces us (governments, businesses and individuals) to make choices! https://www.youtube.com/watch?v=OS_9A_EA30M 4. Choices involve opportunity costs.

Role of Economic Systems – 3 crucial questions What and how much should be produced? How goods/services should be produced? Who gets the good/services produced?

Intro. to Econ Different governments make different economic systems depending on their political views.

Economic Systems: refers to how people use limited resources to satisfy their wants and needs Traditional: barter system Market: individuals and businesses buy and sell goods and services Command: gov’t controls all aspects of economy Mixed: gov’t and businesses share economic decisions

Practice Part I - Name the System! 1. The managers of the Samsung cell phone factory now offer bonuses to workers to encourage them to produce more phones for consumers 2. In the former Soviet Union national planning commissions told regional commissions to produce more refrigerators 3. Like his dad before him, Massaud is the blacksmith in his West African village. Every day he teaches his son his craft, so that he will continue his work.

Practice II - Cow Poster Listen to the description of the government/economy as read by your classmates. On your piece of paper, point to what kind of economy is it: Command Market Mixed Traditional

What kind of economic system do these countries have?

Lesson 3

All proceeds go to support a good cause… Holmes Cupcake Sale All proceeds go to support a good cause… Mr. Holmes Please buy a cupcake!

Cupcake Lesson Observations? Why did I go up/down in price?

Cupcake Lesson What could affect demand for cupcakes? Who has money? Who wants a cupcake? How many people want a cupcake? What could impact the supplies of cupcakes? What if there was a guy right next to me selling cupcakes? How much does it cost to make/buy a cupcake?