Amos- Economics Chapter 19

 You are a contractor building a house. Using the 4 factors of production, outline the building of this house. Use necessary factors of production to create this house.

 Page 526 #1-2

 Total value of all final goods and services produced in a country

 GDP used to measure standard of living  Per Capita GDP= Output per person in a country  GDP measures quantity not quality

 Market economics flow in a circular model  Market economics are divided into sectors: 1. Consumer Sector- Income Earned A. Factor Markets- Productive Resources are bought and sold 2. Business Sector- Income Spent A. Product Markets- Goods and services are sold 3. Government Sector- Expenditures and Revenue 4. Foreign Sector- less the 4% of GDP

 Independent Practice: Complete the circular flow chart given to you by the teacher.

 Productivity- Amount of output produced by input over a given period  Specialization- Produce goods better than someone else  Division of Labor- Breaking down jobs  Human Capital- People’s skills, abilities, and motivation  Economic Interdependence- Relationship between producers and consumers to fulfill needs and wants

 Economist  Wrote: The Wealth of Nations  Laissez- faire Economics- “To be left alone”  Invisible hand theory with limited government interference

 Markets  Economic Freedom  Private Property Rights  Competition  The Profit Motive  Voluntary Exchange  Create a six fingered hand to include:  Adam Smith’s Bio in the palm  Six factors that make capitalism work along the fingers  Page 531

 More government influence in market economies  Tools: Taxes, Deficits, and Spending  Revamped previous knowledge on free market economies Keynesian Theory

Karl Marx Wrote: Communist Manifesto Became the ruling economic system in Russia after WWI Communism

Communist Manifesto The Communists do not form a separate party opposed to other working-class parties. They have no interests separate and apart from those of the proletariat as a whole. They do not set up any special principles of their own, by which to shape and mould the proletarian movement. The Communists are distinguished from the other working-class parties by this only: 1. In the national struggles of the proletarians of the different countries, they point out and bring to the front the common interests of the entire proletariat, independently of all nationality. 2. In the various stages of development which the struggle of the working class against the bourgeoisie has to pass through, they always and everywhere represent the interests of the movement as a whole.

Traditional v. Command

Graphic Organizer Command, Market, Mixed- Chapter 26-2 Traditional- page 724