Seat Work: Take out your: SS Project #1: VOCAB If it’s in your locker, sign-out and go get it quickly, please! CORRECTION!! I made a mistake.  Bad teacher. I’m sorry. There’s a duplicate on your word list: #15 & #18 Get a new #15 definition slip and tape it into your project … or make the change yourself: 15.command or planned economy = an economy in which production, investment, prices, and incomes are determined by a government. Replace # 18 with: 18.Autocratic = government in which one person has uncontrolled or unlimited authority over others, for example a monarchy or dictatorship Saddam Hussein led an autocratic government in Iraq.

Let’s Play Economics! Activity 1: Select a Team Banker. You will have the opportunity to earn 1 cent for each set of slide notes you complete. 1 completed set of notes = 1 cent of income BANKERS will pay each team member as they complete their work. Incomplete work or slow to get done, and you don’t get paid. NOTE: You may have the opportunity to buy goods and services throughout, today’s lecture.

Activity 2: Take notes. 1. Goods (Hint: nouns) products that are purchased for consumption by the average consumer; tangible items that meet consumers wants or needs Examples: – Cookies – Cars – Clothing – Apple iPhone – __________________ All the food on Kroger’s shelves are goods. 2. Services (Hint: verbs) work or actions done for someone else in exchange for payment Examples: – Mowing your lawn – Fixing your car – Baby sitting – Cell phone wireless provider – _______________________ Teachers provide an educational service. Bankers pay Team Members

The 2 main economic participants are: 3. Producers a person or company that makes, grows, or supplies goods or services for sale. Examples: – Farmers  food – Companies  manufactured products – Where does your parent work? -> ________________ – What does the company produce? ________________ – You? ____________________ 4. Consumers a person who purchases goods and services for personal use Examples: – What goods do you buy as a consumer? ____________ – What services do your parents buy as consumers? ________________________ ________________________ Bankers pay Team Members

5. Scarcity scarcity = The basic economic problem that arises because people have unlimited needs and wants but resources are limited. Have you ever wanted something but not had the money to buy it? ____________________ That’s scarcity! Bankers pay Team Members

5. Scarcity scarcity = The basic economic problem that arises because people have unlimited needs and wants but resources are limited. Have you ever wanted something but not had the money to buy it? ____________________ That’s scarcity! Consumer Opportunity!! 1 cup of M&M’s costs 4 cents

6. Opportunity Cost opportunity cost = The cost of passing up the next best choice when making a decision. You are buying a phone. Choose one: – iPhone or Samsung Galaxy? The lost opportunity cost is _________________________ You have $10,000 to invest in stock. You buy shares in: – Apple or Microsoft? The lost opportunity cost is __________________ 7.If you had bought __________________ in 2004, your actual lost opportunity cost would have been $ __________

6. Opportunity Cost opportunity cost = The cost of passing up the next best choice when making a decision. You are buying a phone. Choose one: – iPhone or Samsung Galaxy? The lost opportunity cost is _________________________ You have $10,000 to invest in stock. You buy shares in: – Apple or Microsoft? The lost opportunity cost is __________________ 7.If you had bought Microsoft in 2004, your actual lost opportunity cost would have been $ __________! Bankers pay Team Members

Buying Opportunity! Filter of Fruit Loops costs 8 cents Jolly Rancher costs 2 cents You chose to buy _______________ What was your lost opportunity cost? ________

A key relationship that determines prices! 8. Supply the total quantity of a product or service that the marketplace can offer. 9. Demand the quantity of a good or service that is desired by consumers. 10. Thought experiment: Bankers pay Team Members

11. 3 Types of Resources 12. Human13. Capital14. Natural the personnel of a business or organization, especially when regarded as a significant asset. goods usage to make other goods and services. Basic categories of capital resources include tools, equipment, buildings, and machinery. materials or substances such as minerals, forests, water, and fertile land that occur in nature and can be used for economic gain. A law firm is mainly based on human resources. A car company requires a huge investment in capital resources. A farmer primarily depends upon natural resources such as land, water, sun, and bees. Bankers pay Team Members

15. 4 Types of Economies 16. Traditional Economy 17. Command or Planned Economy 18. Market Economy19. Mixed Economy system in which traditions shape the goods and products and services created. They are often rural and with subsistence farming, hunting or fishing and are often defined by bartering and trading with little surplus being produced. an economy in which production, investment, prices, and incomes are determined by a government. a system in which decisions regarding investment, production and distribution are based on supply and demand, and prices of goods and services are determined in a free price system. economic system in which both the private sector and government direct the economy, reflecting characteristics of both market economies and command or planned economies. Both the Northern colonists and Native Americans had traditional economies. Cuba has a command economy. The private sector is based on a market system. The United States has a mixed economy. Bankers pay Team Members

20. The United States has a mixed economy. Bankers pay Team Members Command/ Planned Market

Last buying opportunity! 1. All team members must pay the Banker 1 penny for their services. 2. Choose the 2 things that you would most like to buy and have enough money to buy. 1 piece of gum = 4 pennies 1 Jolly Rancher = 2 pennies Filter of Fruit Loops = 6 pennies Cup of M&M’s = 8 pennies 3. You MAY buy only 1 thing, so what was your lost opportunity? Bankers collect all the pennies for the purchases and put them back in the “Cup Bank.” Come to the front to fulfill your team’s order.

Hope you had fun Reviewing Economics! Please put all your pennies back in the Cup Bank for the next class.