1. ECONOMY A system for producing, distributing, and consuming goods and services. EXAMPLE: We PRODUCE FOOD in factories, we distribute food by selling and buying and we consume the food.

2. PRODUCERS Producers are the OWNERS and the WORKERS. – EXAMPLE: The person who MADE your iPhone is a PRODUCER.

3. GOODS The products that PRODUCERS MAKE are called GOODS. – Your iPhone is a “GOOD” – Your JORDANS are a “GOOD” – Your hamburger from whataburger is a “GOOD”

4. SERVICES Some “PRODUCERS” offer services instead of goods. – EXAMPLE: HAIR STYLISTS OFFER HAIR CUTS DOCTORS OFFER MEDICINE AND HEALING A TRAINER OFFERS HELP WITH FITNESS THESE ARE ALL SERVICES, NOT GOODS.

5. CONSUMER Consumers are those who BUY the services or goods. – EXAMPLE: If you have ever bought ANYTHING, you are a consumer? Your iPhone your parents bought? THEY ARE A CONSUMER. Your video games? That makes you a CONSUMER. Your new backpack? CONSUMER

6. 4 EXAMPLES OF ECONOMIC INDUSTRIES PRIMARY INDUSTRY SECONDARY INDUSTRY TERTIARY INDUSTRY QUATERNARY INDUSTRY

7. PRIMARY INDUSTRY PRIMARY INDUSTRY CONSISTS OF RAW MATERIALS. – EXAMPLES: FISH AGRICULTURE MINING FORESTRY

8. SECONDARY INDUSTRY Secondary industry refers to manufacturing. They take the raw materials from the PRIMARY industry and turn them into goods and services. EXAMPLE: – Primary industry may have vegetables but SECONDARY industry turns those vegetables into things like salsa, pre-made stir fry bags, or restaurant food.

9. TERTIARY INDUSTRY TERTIARY INDUSTRY refers to services that are given. – EXAMPLE: BANKING POLICE STATION HAIR SALON FIRE STATION TRANSPORTATION HEALTH CARE

10. QUATERNARY INDUSTRY QUATERNARY INDUSTRY refers to INFORMATION TECHNOLOGIES. – EXAMPLE! INTERNET SERVICES PHONE SERVICES COMPUTERS CABLING AND WIRING COMPUTER SOFTWARE

11. ECONOMIC SYSTEMS TRADITIONAL ECONOMY MARKET ECONOMY COMMAND ECONOMY

12. TRADITIONAL ECONOMY In a TRADITIONAL ECONOMY, the CUSTOMS, TRADITIONS, and HABITS of the group influence the producing, buying and selling of goods.

13. AMERICAN ECONOMIC SYSTEM Normally referred to as: – FREE ENTERPRISE SYSTEM. Free Enterprise System is characterized by private or corporate ownership of capital goods. – Free Enterprise System is often called CAPITALISM or MARKET ECONOMY.

14. FREE MARKET When a company sells its goods in a free market they make profit or money. If the price of the goods are too high, often times consumers won’t buy. When consumers don’t buy…the prices get lowered.

15. Command Economy In a Command Economy, economic decisions are made by the government. The government decides what products should be made, how much product should be made, and what the cost will be.

16. 2 MAJOR TYPES OF COMMAND ECONOMY SOCIALISM: Government owns the most basic industries. COMMUNISIM: The government owns all property. The government decides where you will live, the price of goods, the price of services and almost every aspect of your life.

17. GOVERNMENT A Government is the system that sets up and enforces a society’s laws and institutions. Some governments are controlled by a few people, and others are controlled by many.

18. Direct Democracy Citizens participate indirectly in the decision making. – EXAMPLE: New England Town Meeting: The adult citizens are able to vote on laws, budget items, and town officers.

19. Monarchy King or Queen rules the government. They ruler inherits the throne by birth. Most common form of government until about 100 years ago. Monarchies today are LIMITED governments.

20. Representative Government Also known as the republic The “people” hold the power to govern and rule. If people do not like what a representative does, they can choose not to re-elect them. What are some examples of a Representative Government?

21. Dictatorship Unlimited government. One person holds all of the power. They hold the laws and decide if there will be an election. The citizens have little say-so. People lose the right to make their own decisions.