Welcome to Economics! Turn your homework into the box Grab your notebook Find a seat where you are free from distractions and be seated when the bell rings. Create a new entry for “Governmental Involvement”

Do Now- “Governmental Involvement” Should it be legal to smoke cigarettes inside public buildings? Why or why not? Some politicians have proposed to end the Food Stamps program. Is this a good idea? Why or why not? 5 minutes End

Objectives of the day: I can explain and analyze the roles of government in a market economy in order to analyze different scenarios of various economies.

QOD When, how, and why should the government have a role in our market economy?

Last Time: Difference between Capitalism and Socialism

4 Types of Economy 1. Market based (Laissez-Faire) In this economy there is “zero” government influence. The market is driven only by supply and demand

2. Command Economy (Socialism) Government has huge influence in economy Gov. controls prices and the Factors of Production

3. Traditional Economies tradition, customs, and beliefs shape the economy Typically rural farming based countries

4. Mixed Economy Combination of Market and Command Strong markets, governmental influence in the market

Examples My name is Heraldo Esterez. I have lived in Cuba all my life. I wanted to become a teacher. However , I work for a large sugar producer that is owned by the government. The government decides when I work, where I work, and how much money I receive. What economic system am I describing?

Examples I am a basket maker in India. The people in my village make beautiful baskets. My grandmother and my mother made baskets. What type of economic system am I describing?

Examples My name is Curt Jones and I have always had a passion for delicious ice cream. I discovered a way to freeze ice cream into small dots. I patented the process for making the ice cream and built a plant to make enough ice cream to sell it internationally. Which economic system am I describing?  

The US government is a perfect example of a Mixed Economy But what good does the government have?

Public Goods and Services Public Goods and services are anything owned by the government and made available to all citizens. Example: I-240 (Even though not everyone drives on it, anyone could.) Public Schools are built for the use of all students, using tax money.

Redistributes Income Programs designed to reduce the gap between the rich and those in need. Through transfer payments, the government provides services only to those who need it. Example: Medicare provides health assistance to elderly people (65+) SNAP is the name of the program that provides food stamps to specific families.

Protect Private Property Rights Individuals and businesses have the right to own things. So, if someone takes your property, the law will punish them. Examples: If a car was stolen, the owner would either get it back or get paid back. You can own land or possessions.

Resolve Market Failures In order to create stability, the government will take actions to fix market failures. Market failures include: monopolies, unsafe working conditions, and unsafe products. Example: There are laws against child labor. If there was only one gas station in town, the government would call that a monopoly and encourage others to open. Why?

Roles of Government: Categorize! 0:39 0:38 0:40 0:41 0:43 0:42 0:37 0:36 0:31 0:30 0:32 0:33 0:35 0:34 0:44 0:45 0:55 0:54 0:56 0:57 0:59 0:58 0:53 0:52 0:47 0:46 0:48 0:49 0:51 0:50 0:29 0:28 0:08 0:07 0:09 0:10 0:12 0:11 0:06 0:05 End 2:00 0:01 0:02 0:04 0:03 0:13 0:14 0:23 0:22 0:24 0:25 0:27 0:26 0:21 0:20 0:16 0:15 0:17 0:18 0:19 1:00 1:01 1:41 1:40 1:42 1:43 1:45 1:44 1:39 1:38 1:34 1:33 1:35 1:36 1:37 1:46 1:47 1:56 1:55 1:57 1:58 2:00 1:59 1:54 1:53 1:49 1:48 1:50 1:51 1:52 1:32 1:31 1:10 1:09 1:11 1:12 1:14 1:13 1:08 1:07 1:03 1:02 1:04 1:05 1:06 1:15 1:16 1:26 1:25 1:27 1:28 1:30 1:29 1:24 1:23 1:18 1:17 1:19 1:20 1:22 1:21 Roles of Government: Categorize! AT&T was the only cell phone provider in Memphis and wanted to charge a minimum of $50 a month for phone service. Memphis courts said this was not allowed and let Verizon wireless open stores here too. Thomas Jefferson thought that it was key to a democracy to provide schools that everyone could attend. A tax called the Estate Tax, collects money from people who have more than 2 million dollars after they die, in order to pay for public programs. Big industrial farms in the U.S. used to inject chickens and cows with a hormone called BGH to make them grow faster. This hormone affected people eating the meat causing early puberty and even cancer, so the FDA banned the use of it in chickens. If someone steals your laptop, courts will demand that they reimburse you or give the stolen computer back. There is a government program called SNAP that provides financial assistance to U.S. citizens who cannot afford to buy food. It does not matter if you are rich or poor, if your house catches on fire, the Memphis Fire Department will come and put it out at no cost to you.

“The Jungle” By Upton Sinclair https://www.roastcream.com/images/hokrgelbx.php?u=Oi8vd3d3LnlvdXR1YmUuY29tL3dhdGNoP3Y9a0hGX0JXZlNQaWs%3D&b=5

End With a Partner Read “The Jungle” at volume 1. Alternate paragraphs Annotate using CATCH- At least 3 comments and questions, at least 3 key points underlined Answer questions in your notebook

End By Yourself End Complete the Economy Scenarios by classifying each scenario as Market, Command, Traditional, or Mixed. Read and Annotate (CATCH) the case study about Banker’s Bonuses. At least 3 comments or questions Answer questions in complete sentences in your notebook

Exit Ticket Clear your Desks Silent and Independent

Homework Describe the economies of 5 different countries (2-3 sentences each). Classify each economy as Market, Command, Mixed, or Traditional.