Your Economic Role Mr. Donecker

 Giancarlo left his college campus right after his ten o’clock accounting class. He hurried to catch the bus so he would arrive at his part-time job on time. He works as a bank teller to earn money for college. He is also gaining work experience to go along with his accounting major. After work, he bought a new shirt that he needed. That evening, he reviewed in the newspaper issues to be decided in the next day’s election. In the morning before class, he went to the polling place to cast his vote for a school levy as well as a city council woman who showed support for environmental issues that Giancarlo believes are important. He may not be aware of it, but he performed three economic roles.  Can you identify the three roles? Focus on Real Life

 As a consumer: shirt (good) bus (service)  As a worker: bank teller (service)  As a citizen: voted Were you right?

Consumer Worker Citizen Your three economic roles Yolanda uses the services of a carpet cleaner Rolf buys new tires for his car Wanda teaches at a local community college Andre is an aide in a hospital Stefan is a member of the school board Rita volunteers as a polling clerk

 ALL YOUR DECISIONS AFFECT MORE THAN JUST YOU…  THEY AFFECT THE ECONOMY AS WELL!!

 Consumers buy more than 2/3rds of all goods and services produced in our economy  Those buying decisions, by individuals, businesses, and the government, provide the answer for how we use our scarce resources Consumers play a central role

 What is a dollar vote?  Buying - or not buying - certain goods and services  “casting a vote” for or against the good/serv.  Tells company the demand for a product  Quantity of a product or service that consumers are willing and able to buy at a particular price Dollar Vote

DDollar votes help to create demand DDemand helps determine supply DDemand and supply affect prices CCompetition keeps prices reasonable How your consumer role affects our economic system

How much are you willing to pay?  $0.25?  $0.50?  $0.75?  $1.00?  $1.25?  $1.50?  $1.75?  $2.00?

Demand Curve Price $2 $1.75 $1.50 $1.25 $1.00 $0.75 $0.50 $ Quantity

Your vote counts! Buying of iPhone 6s Increases; Production of iPhone 6s Increases Buying of Galaxy S6 Decreases; Price is reduced to clear inventories Galaxy S7 is developed to replace Galaxy S6

 Supply is the quantity of a product or service that a business is willing and able to provide at a certain price Demand determines Supply

 The higher the demand, the higher the price  Christmas cards in November and December are more expensive than in January and February.  What are some other examples?  The more the supply, the less demand  Diamonds are in high demand because they are a rare and precious stone  What are some other examples? Demand and Supply affect prices

 If my store offered blu-ray discs for $29.99 and the store down the street offered the same blu-ray discs for $24.99, which store would you buy from? Competition keeps prices reasonable Why might you buy from the store that charges more?

 Businesses with comparable products must set their own prices based on their own costs of doing business.  What are some examples of businesses that could price fix? Price fixing

 Your job (salary) affects the amount of money you have to spend on needs/wants  Amount of needs/wants you can afford affects your standard of living  Productivity increases standard of living  Your role as a worker supports your role as consumer Your Role as Worker

 The way you live; measured by the kinds and quality of goods and services you can afford. Standard of Living

 The quantity of a good that an average worker can produce in an hour Productivity 240,000 Model T’s a year Produced over 5 million new cars

 What has caused this advance in productivity? Technology Varied and diverse work force More skilled workers  Productive workers increase the overall standard of living for a country Productivity Cnt’d.

 Some needs/wants are supplied through public goods Things needed by a community and provided by its government Your Role as a Citizen

 Your role as a citizen allows you to get involved in helping to make these types of decisions  How? Citizen