1 Objectives: 1. Describe economic concepts that apply to satisfying economic wants. 2. Explain the role of capital formation in an economy. Warm Up: Explain the difference between an economic need and an economic want. List two examples of each Agenda: 1.Complete warm-up 2.Econ 101 PowerPoint 3.Group activity 4.Bottom Line

 Economic Wants  The desire for scarce material goods and services  Non-Economic Wants  The desire for nonmaterial things that are not scarce (air, sunshine, friendship, happiness, respect)

 Ability of a good or service to satisfy a want  A good or service that has utility is a useful good or service

Form Place Time Possession

Form Place Time Possession Change in the form or shape of a product Ex: clothing that has a particular fabric or style you desire Having a product or service where a customer can buy it Ex: available in a nearby store Having a product or service available at a certain time of year or a convenient time of day Ex: Is the store open when you are ready to buy? Transfer of ownership (rent, borrow, buy) Ex: Is the product/service available at a price you can afford and are willing to pay?

Capital Goods Labor Land (natural resources) Entrepreneurship

Land Labor Capital Goods Entre- preneurship Anything provided by nature that affects productive ability Ex: fertile soil, minerals, water Human effort into production, can be physical and mental Ex: employee knowledge and skills Equipment used to produce other goods Ex: buildings, tools, machines Ownership of a business Ex: starting a business (planning, managing, risk)

 Capital Formation  Steel used to produce tools rather than the final product, a car.  Immediate Reaction  Using steel to create tools needed for final production will decrease the number of final products (not enough steel for car production)  Future Reaction  Having the tools to create the final product will, over time, allow for more cars to be produced.

Labor!

Land!

Capital!

Entrepreneur!

21 Objectives: Discuss three economic systems and three political systems. Explain why a business considers the economic- political system of a country. Warm Up: Explain why no country has enough resources to satisfy all the wants of all people for material goods and services. Write this down in your binder. Agenda: 1.Complete warm-up 2.Economic and Political systems P.P. 3.Group activity 4.Individual activity 5.Bottom Line

 Scarce resources  Capital goods vs. Consumer goods/Final product  Answer the what, how, and for whom questions

23 An organized way for a country to decide how to use its productive resources…..  What to produce  How to produce  Who should we produce for

24  Market economy  individual buying decisions in the marketplace determine what, how, and for whom goods and services will be produced  Command economy  central planning authority, under control of government, owns most of the factors of production and determines what, how, and for whom goods and services will be produced  Mixed economy  aspects of a market and a command economy are used to make decisions about what, how, and for whom goods and services will be produced

25  Capitalism  private citizens are free to go into business for themselves  produce whatever they choose, and distribute what they produce  Socialism  government controls the use of the country’s factors of production  Communism (extreme socialism)  all or almost all of a nation’s factors of production are owned by the government

 Checkpoints:  Page 55  Page 56  Page 58  Page 61  3.1 Assessment on page 56  3.2 Assessment on page 61  Review Terms and Concepts on page 75  1,2,3,5,8,10, 12,13,16,17,18,19,20,21,22,23,24,25

27 Objectives: Describe why private property is important to capitalism. Describe how prices are set in a capitalistic system. Warm Up: Get into your groups and continue working on the activity from Wednesday. Agenda: 1.Complete warm-up 2.Individual assignment 3.Review of assignment 4.Fundamentals of capitalism P.P. 5.Bottom Line

28 Objectives: Describe why private property is important to capitalism. Describe how prices are set in a capitalistic system. Warm Up: Write a paragraph describing what capitalism is Agenda: 1.Complete warm-up 2.Fundamentals of capitalism P.P. 3.Bottom Line

29 Private property (basic feature of capitalism)  individuals have the right to own, use, and sell. Own Land Hire Labor Own Capital Goods If you make it, you own it! Why is private property important to capitalism? With the right to buy, own, and sell property, individuals can control productive resources.

30 Total money received from customers minus the total cost to produce the products or services.  Cost of land, labor, capital, materials  Roughly 5% of the cost of goods and services is considered profit

31 Produce goods or services that people want at a price they are willing to pay. Demand vs. Want  Demand = number of products that will be bought (want, ability, willingness)  Want = desire, but not ability or willingness to buy products

Relationship between demand and price  Increased demand = Increased price  Decrease demand = Decrease price Price

Supply is the number of products that will be offered for sale. How supply influences price: Decrease supply = Increase price Increase supply = Decrease price

 Based on what we just learned, how is price determined?  Supply and Demand  Prices are the result of the decisions of individual consumers to buy products and of individual producers to make and sell products

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 Rivalry among sellers for consumers’ dollars  How can competition in business benefit society? Improved quality of products Develop new products Operate efficiently to keep prices down

What are some of the ways you can attract customers over your competitors?  Lowering prices  Provide better quality  Adding features  Unusual and colorful packaging  Extensive advertising campaign

 The existence of one seller of a product  No competition Could charge unreasonably high prices Customers don’t have a choice if they need or want a product/service

 Check your grades in Infinite Campus.  Marking Period 1 grades are due by Wednesday!

40 Objectives: Describe the economy and all the components of an economy. Warm Up: Take out your binder and place it on your desk for the notebook check. Agenda: 1.Complete warm-up 2.Review the assignment from yesterday. 3.Managing the Economy P.P. 4.Study Guide 5.Bottom Line

Supply  The quantity of goods and services that producers are willing and able to provide  When Supply > Demand, the Price goes DOWN Demand  The willingness and ability of consumers to buy goods and services  When Demand > Supply, the Price goes UP Slide 41

Slide 42 The economy - the activities related to making and distributing goods and services. A market economy is based on the law of supply and demand. (U.S) o The price is determined by what consumers are willing to pay and sellers are willing to accept.

Slide 43 Four Stages: Recovery, Peak, Recession, Trough

…growing…  People buy goods and services  Jobs are created  Businesses are hiring …slowing…  People buy fewer goods and services  Fewer people are hired; there are layoffs  Businesses are not growing Slide 44