Government’s Role in Economy TermDefinition Economy The production and consumption of goods and services in a country

First: Important Vocabulary TermDefinition CurrencyCoin or paper money used to purchase goods and services

Currency

Second: Important Vocabulary TermDefinition AllocateTo spend a specific amount of money on a specific thing

Allocate How did you suggest the government reallocate its spending in your essay?

Third: Important Vocabulary TermDefinition MarketThe exchange of goods and services between two or more people

Important Vocabulary Continued TermDefinition ScarcityThe problem of having limited resources to meet unlimited wants

Scarcity

What is the scarce resource for this guy? He has $300 to spend Yet, he wants over $1500 worth of goods He has a scarcity of…

He has a scarcity of money

Scarcity Jimmy returns home from school at 5:00 pm. He has work at 7:30 pm. Before work he needs to complete his homework, do his laundry, clean his room and help his younger brother with his homework. The total time it will take to get all this done is 4 hours, but remember that Jimmy has work. What is the scarce resource in this scenario?

There is a scarcity of time

Important Vocabulary Continued TermDefinition Opportunity Cost What is given up when a person chooses something else

This guy decides to buy the iPod. What is his opportunity cost?

His opportunity cost is the Air Jordan Sneakers

Important Vocabulary Continued TermDefinition Tax Revenue The income of the government when it takes tax money from the people

Tax Revenue Government

Tax Revenue Government uses its tax revenue for… Public Services -Schools, Roads, Hospitals, Parks Protect National Security -Military Forces, Counter-Terrorist Programs Maintain Social Order -Police Salary, Build Prisons, Natural Disasters

There are 4 types of Economy Traditional Command Market Mixed

Traditional Economy Keywords/Phrases: Long-standing customs (values) Inherited (born into) occupations (jobs) Hunting and farming are common

Traditional Economy

Command Economy Keywords/Phrases: Government control National production goals Public (government) ownership

Command Economy

Market Economy Keywords/Phrases: Individual choice Business competition Private (individual) ownership

Market Economy

Mixed Economy Keywords/Phrases: Government Regulation Protect Public Interest

Mixed Economy - United States This kind of economy includes some parts of traditional, command and market Government plays a role, but businesses are given many freedoms Government sets rules for the economy so that people are protected

Mixed Economy

In order for Hopkins to build the Bio Tech Park in E. Baltimore…

Affordable Housing Must Be Included

Your Ideas What should be done to improve the economy here in Baltimore? Discussion Rubric: PointsActions +2 Makes or responds to a statement quoting information from the text or government vocabulary to support your opinion. +1 Makes a statement or gives an opinion that contains misconceptions but students gave a worthy attempt. 0 Student does not participate. Student makes a statement that is off topic and not relevant to the discussion. Students calls out. -2Student is having a side conversation / engaged in other distractions.