1. What is economics? The study of how people manage their resources.

3. Traditional Economy

4. Based on Traditions & Customs -What is produced? Mostly Needs (Food, Shelter, Basic Tools, etc.) -How are things produced? Hunting, Gathering, maybe Farming -How do people get things? Make it themselves or barter (trade) *Very rare in the modern world, these types of economies are found in very rural places usually.

5. Command Economy

6. CONTROL GOVERNMENT What is produced? The govt. decides. Usually whatever the govt. thinks the people need. How are things produced? The govt. decides where & with what, things are produced. How do people get things? The govt. decides. May set limits on how much people can have *usually results in less choice of consumer goods & services *Associated w/ Communism & Socialism

7. Market Economy

8. What is produced? Whatever people are willing to buy & sell (both needs & wants) Supply & Demand. How are things produced? The producer decides. Usually in the ways that costs the least, so they can make more $$$$$. How do people get things? It is based on ability & willingness of the consumer to buy goods & services -Producers compete with each other for the money of consumers -Most likely to produce economic growth GOVT. Business

9. Mixed Economy May include components of both a market & a command economy Why is the United States considered a “mixed” economy?

10. http://www.heritage.org/index/

11. Pure Market Pure Command The numbering system is based on The Heritage Foundation’s Economic Freedom Index 2015 The Heritage Foundation is a conservative organization that has partnered with the Wall Street Journal for over a decade to evaluate each country based on a set of 10 criteria to determine economic freedom. USA is 76.2 **USA was 75.5 last year @ this time, so that means our economy has moved a little closer to market in the past year

12. Also known as:

14. (R20) Economic Systems in Europe

15. Today’s Standard SS6E5 The student will analyze different economic systems. c. Compare the basic types of economic systems found in the United Kingdom, Germany, and Russia.

16. Intro to our……. “Essential Question(s)” How are the economic systems of the United Kingdom, Germany, and Russia similar? How do most countries strike a balance between having a pure market and pure command economy?

17. Comparing Economic Systems Russia- “Ruble” United Kingdom- “Pound” Germany- “Euro”

18. Country Type of Economy What the Government Controls Economic Freedom Index Score 0-Pure Command ↓ 100-Pure Market United Kingdom Not much. Most industries are privately owned Germany Russia Mixed Market 75.8

19. Pure Market Pure Command Russia 52.1 Germany 73.8 United Kingdom 75.8 The numbering system is based on The Heritage Foundation’s Economic Freedom Index 2015 The Heritage Foundation is a conservative organization that has partnered with the Wall Street Journal for over a decade to evaluate each country based on a set of 10 criteria to determine economic freedom. ECONOMY TYPES IN EUROPE USA is 76.2

20. Comparing Economic Systems Russia- “Ruble” United Kingdom- “Pound” Germany- “Euro”

21. Country Type of Economy What the Government Controls Economic Freedom Index Score 0-Pure Command ↓ 100-Pure Market United Kingdom Not much. Most industries are privately owned Germany Most industries are privately owned Russia Mixed Market 75.8 Housing & Healthcare provided for the poor Mixed Market 73.8

22. Pure Market Pure Command Russia 52.1 Germany 73.8 United Kingdom 75.8 The numbering system is based on The Heritage Foundation’s Economic Freedom Index 2015 The Heritage Foundation is a conservative organization that has partnered with the Wall Street Journal for over a decade to evaluate each country based on a set of 10 criteria to determine economic freedom. ECONOMY TYPES IN EUROPE USA is 76.2

23. Comparing Economic Systems Russia- “Ruble” United Kingdom- “Pound” Germany- “Euro”

24. Country Type of Economy What the Government Controls Economic Freedom Index Score 0-Pure Command ↓ 100-Pure Market United Kingdom Not much. Most industries are privately owned Germany Most industries are privately owned Russia Some large industries (oil, natural gas, shipping) Mixed Market 75.8 Housing & Healthcare provided for the poor Mixed Market 73.8 Mixed 52.1

25. Pure Market Pure Command Russia 52.1 Germany 73.8 United Kingdom 75.8 The numbering system is based on The Heritage Foundation’s Economic Freedom Index 2015 The Heritage Foundation is a conservative organization that has partnered with the Wall Street Journal for over a decade to evaluate each country based on a set of 10 criteria to determine economic freedom. ECONOMY TYPES IN EUROPE USA is 76.2

26. Get your sheet of Notebook Paper labeled: “R19-B” Write this on the top lines: Traditional or Command or Market Economy Which would you prefer to live in? & Why? Include at least 3 COMPLETE SENTENCES in your response MUST BE COMPLETED By MONDAY – October 12 th

27. (R20-B) Voluntary Trade & Trade Barriers

29. Why do we trade? Why don’t we just produce all of our needs/wants for ourselves?

30. Definitions Trade Barrier- Market: Domestic Good- Foreign Good- An obstacle, or something that makes trade difficult. (Place)Anywhere goods/services are bought/sold Something produced in your country Something produced in another country

31. (R20-C) Voluntary “Free” Trade Domestic Market (USA) Foreign Markets (Other Countries) Foreign Goods US Goods BENEFITS: US Producers can sell goods to more people around the world (bigger Marketplace = More $) More $ for US Producers means more jobs for US workers US Consumers have more products available to choose from US Consumers have more choices and possibly cheaper prices RISKS: “Market” wherever goods/services are sold or consumed

32. So, we can see why trade can be a good thing. So…. Why would a country purposefully hinder or slow/stop trade from happening?

33. (R20-C) Voluntary “Free” Trade Domestic Market (USA) Foreign Markets (Other Countries) Foreign Goods US Goods BENEFITS: US Producers can sell goods to more people around the world (bigger Marketplace = More $) More $ for US Producers means more jobs for US workers US Consumers have more products available to choose from US Consumers have more choices and possibly cheaper prices RISKS: Foreign Producers may have cheaper goods & could possibly run US Producers out of business If US Producers lose money or go out of business, that can mean less jobs for US workers “Market” wherever goods/services are sold or consumed

34. Today’s Standard(s) SS6E2 The student will give examples of how voluntary trade benefits buyers and sellers in Europe. b. Compare and contrast different types of trade barriers, such as tariffs, quotas, and embargos.

35. Intro to Our Essential Question…… How do trade barriers (tariffs, quotas, and embargos) hinder voluntary trade from occurring between countries?

37. Why do we trade? Why don’t we just produce all of our needs/wants for ourselves?

38. Definitions Trade Barrier- Market: Domestic Good- Foreign Good- An obstacle, or something that makes trade difficult. (Place)Anywhere goods/services are bought/sold Something produced in your country Something produced in another country

39. (R20-C) Voluntary “Free” Trade Domestic Market (USA) Foreign Markets (Other Countries) Foreign Goods US Goods BENEFITS: US Producers can sell goods to more people around the world (bigger Marketplace = More $) More $ for US Producers means more jobs for US workers US Consumers have more products available to choose from US Consumers have more choices and possibly cheaper prices RISKS: “Market” wherever goods/services are sold or consumed

40. So, we can see why trade can be a good thing. So…. Why would a country purposefully hinder or slow/stop trade from happening?

41. (R20-C) Voluntary “Free” Trade Domestic Market (USA) Foreign Markets (Other Countries) Foreign Goods US Goods BENEFITS: US Producers can sell goods to more people around the world (bigger Marketplace = More $) More $ for US Producers means more jobs for US workers US Consumers have more products available to choose from US Consumers have more choices and possibly cheaper prices RISKS: Foreign Producers may have cheaper goods & could possibly run US Producers out of business If US Producers lose money or go out of business, that can mean less jobs for US workers “Market” wherever goods/services are sold or consumed

42. Today’s Standard(s) SS6E2 The student will give examples of how voluntary trade benefits buyers and sellers in Europe. b. Compare and contrast different types of trade barriers, such as tariffs, quotas, and embargos.

43. Intro to Our Essential Question…… How do trade barriers (tariffs, quotas, and embargos) hinder voluntary trade from occurring between countries?

44. Human-Made Trade Barriers Tariff – Tariff – a Tax on Imported Goods (makes them more expensive & makes it less likely consumers will buy) Quota- A Limit on the amount of goods that can be imported from another country. Embargo- Embargo- A total Ban on trade with a country – Usually motivated by politics to hurt another country economically.

45. Type of Trade Barrier DefinitionWhy would a country put this barrier in place? Tariff Quota Embargo A TAX on foreign goods imported into a country To INCREASE THE PRICE OF FOREIGN GOODS, which will make consumers more likely to buy domestic goods

46. Grade A Sprocket Sprocket Made in USA Made in China $100 $105 US Consume r If the products are of equal quality, the consumer will most likely choose the cheaper product US (Domestic)Consumer: Because he got what he wanted @ a cheaper Because he got what he wanted @ a cheaper price Chinese (Foreign) Producer: Because the consumer chose their product& they made $$$$$$$ US (Domestic) Producer: Because the consumer didn’t choose their product& they didn’t make any $$$$

47. Here’s how a tariff/tax/duty helps the home team (Domestic Producers) get a competitive advantage

48. Grade A Sprocket Sprocket Made in USA Made in China $ 100 + $10 tax= $110 $105 US Consume r If the products are of equal quality, the consumer will most likely choose the cheaper product US (Domestic)Consumer: Because he got what he wanted @ what he Thought was a cheaper price Chinese (Foreign) Producer: Because the consumer chose their product& they made $$$$$$$ US (Domestic) Producer: Because the consumer didn’t choose their product& they didn’t make any $$$$ Wait a minute!!!! …If trade was free, I would’ve paid $5 less!!

49. Human-Made Trade Barriers Tariff – Tariff – a Tax on Imported Goods (makes them more expensive & makes it less likely consumers will buy) Quota- A Limit on the amount of goods that can be imported from another country. Embargo- Embargo- A total Ban on trade with a country – Usually motivated by politics to hurt another country economically.

50. Type of Trade Barrier DefinitionWhy would a country put this barrier in place? Tariff Quota Embargo A TAX on foreign goods imported into a country To INCREASE THE PRICE OF FOREIGN GOODS, which will make consumers more likely to buy domestic goods A LIMIT on foreign goods imported into a country To INCREASE THE PRICE OF FOREIGN GOODS, which will make consumers more likely to buy domestic goods

51. Human-Made Trade Barriers Tariff – Tariff – a Tax on Imported Goods (makes them more expensive & makes it less likely consumers will buy) Quota- A Limit on the amount of goods that can be imported from another country. Embargo- Embargo- A total Ban on trade with a country – Usually motivated by politics to hurt another country economically.

52. Type of Trade Barrier DefinitionWhy would a country put this barrier in place? Tariff Quota Embargo A TAX on foreign goods imported into a country To INCREASE THE PRICE OF FOREIGN GOODS, which will make consumers more likely to buy domestic goods A LIMIT on foreign goods imported into a country To INCREASE THE PRICE OF FOREIGN GOODS, which will make consumers more likely to buy domestic goods A BAN on foreign goods imported into a country To ECONOMICALLY PUNISH another country

53. R20-C Trade Barriers (Tariff – Quota – Embargo) Domestic Market (USA) Foreign Markets (Other Countries) Foreign Goods US Goods BENEFITS: US Producers do not have to worry as much about competition with foreign producers US Producers can charge more for their goods & services US Producers may be less likely to fire people if they make more $ RISKS: Foreign countries may respond with trade restrictions against US Producers US Producers may lose the foreign markets & will have less consumers to sell to = Less $ US Consumers will have less choices & will most likely pay more than they would w/ Free Trade “Market” wherever goods/services are sold or consumed