Land $4 2 4 Labor $3 1 5 3 $2 Possible production techniques Capital Resource Resource prices Method #1 #2 #3 Land $4 2 4 Labor $3 1 Capital 5 3 Entrepreneurship $2

Small group discussion According to Adam Smith, how does self-interest benefit the economy as a whole?

Graphing activity Draw a basic supply and demand graph for candy from M&M Mars. Label P,Q, S1,D1, EP1, and EQ1. Show what will happen to the graph when the company receives a subsidy for using methane from the landfill to power their machinery. Indicate changes to P and Q.

Discussion Reconstruct the circular flow model with government added into the model. Indicate which parts of the model are affected when MISD uses money raised from a bond election to expand the high school in order to add more science classes.

Terms/concepts to study Capital goods v. consumer goods (examples) The invisible hand Normal v. economic profits Property rights (what is included) Roundabout production Specialization Barter and the coincidence of wants

continued Main sources of tax revenue for the federal government Public goods v. private goods Three major forms of business organizations (percentages, advantages and disadvantages) Externalities (spillover costs and benefits) Fiscal federalism Transfer payments Distribution of income Vertical integration (of firms)