1. Growth and Development

2. You will need to complete the note guide as you read through the PowerPoint. You will be introduced to several economic terms throughout this PowerPoint. Write the definitions of key economic terms on your note guide. Economic terms that need to be defined are in red.

3. What are we talking about when we speak of the economy? The economy is the wealth and resources of a nation and how they are managed. In the U.S. and in Texas, we have a free enterprise or market economy.

4. In a free enterprise economy individuals have the right to own businesses and to make money with limited government interference. Simply stated, you are free to buy what you want, sell what you want, make what you want, and provide any service you want with very few restrictions.

5. Imagine that you are an entrepreneur, or a risk taking business person.

6. You have capital that you would like to invest in a business. Capital is the… equipment, factories, or moneyused to produce goods or services.

7. You want to invest your capital wisely so that you make a profit, or make money.

8. Some of you may be familiar with businesses that have historically been important in the Texas economy such as… oil cattle cotton

9. Historically, the Texas economy has fallen into two categories: Agribusiness and Petroleum Industry Agribusiness- business related to the production, processing, and distribution of agricultural products.

10. Petroleum Industry- the production and distribution of oil and natural gas.

11. The agribusiness and petroleum industries have been good to Texas, but these businesses can be risky because they are greatly affected by a boom/bust cycle in the economy. Boom Bust Boom Bust

12. A boom/bust economy is one that has a cycle of intense highs and lows. Simply put, when things are good they are great, but when they are bad, they are terrible.

13. When the economy is booming, the prices of cattle, crops, and oil are high, thus bringing profit to Texas When the economy is in a bust cycle, prices are low and small profits are made.

14. Many years ago Texan entrepreneurs realized that an economy based on businesses that are affected by the boom/ bust cycle would not be the best for the state’s economy.

15. Diversification, or increasing the variety of products, has been key to a strong Texas economy. Texas has a very strong economy today because we have diverse industries.

16. The next slides are on the modern Texas economy. List these industries in the “Texas Industries Today” section of your student note guide. Agribusiness and the petroleum industry are still strong in Texas today, but we have developed the following industries as well:

17. Petrochemical Industry Petrochemicals are chemicals or products made from petroleum or natural gas such as: rubber synthetic fibers plasticscosmetics

18. Computer/ Electronics Industry

19. Telecommunications Industry

20. Aerospace Industry

21. Service Industries medicine and health care banking and financial education

22. Real Estate Industry

23. Tourism Industry

24. These industries, coupled with our geography and abundant natural resources, make Texas a very strong presence in the global marketplace.

25. What is important to remember about the “Growth and Development” of Texas? What is the overarching, or most important, theme?

26. Texas’ strong standing in the world today originated from its diverse leaders, geography and resources.

27. We’ve come a long way from: cowboys to the cosmos!