1. Economic Systems and Structures
Unit 7

2. The Four Market Structures
Part 1

3. Unwrap the Objectives Factual: Identify the four market structures
Conceptual: Compare and contrast the four market structures
Communicative: Categorize the four market structures

4. Agenda Unwrap the Objective Lecture Notes Video Questions Chart It Out
Check It Out
Essential Question

5. Essential Question
If you were a business owner, what market structure would you prefer? If you were a consumer, what structure would you prefer?

6. The Four Market Structures
Part 1

7. Video Questions https://www.youtube.com/watch?v=Sb_-wfmJnHA
According to the video what is a pure monopoly?
According to the video why are laws against Monopolies called anti trust laws?
According to the video what is horizontal integration?
According to the video what is vertical integration?
According to the video how long do most patens last?
According to the video what is a natural monopoly?
According to the video what is price discrimination?

8. Video Questions According to the video what is a pure monopoly?
A Market controlled by one seller with a good or service that has no close substitutes
According to the video why are laws against Monopolies called anti trust laws?
Monopolies used to be called trusts
According to the video what is horizontal integration?
The Act of buying companies that produce similar products
According to the video what is vertical integration?
When a company directly owns or controls its supply chain
According to the video how long do most patens last?
20 years
According to the video what is a natural monopoly?
When it is more cost effective to have one large producer rather than several smaller competing firms
According to the video what is price discrimination?
Charging different people different prices for the same product or service

9. Perfect Competition Occurs when there are many sellers
There is easy entry and exiting of firms
Products are identical from one seller to another
Sellers are price takers.
A company that must accept the prevailing prices in the market of its products
The company is unable to affect the market price.

10. Perfect Competition Continued
Size of market
Companies have little control over market because they only own a small part of it
Easy of Entry
It is very easy to enter or exit
Similarity of products
Products are the same in a market
Control of price
Firms have to charge what people or willing to pay even a few cents will cost them all business

11. Monopolistic Competition
Occurs when there are there are many firms that offer similar products
There is easy entry and exiting of firms
Products are nearly identical from one seller to another
Sellers are price setters
The firms or companies set prices.
Companies are able to do this because of uninformed consumers not knowing how the small changes in the product should impact the price

12. Monopolistic Competition Continued
Size of market
Companies have little control over market because they only own a small part of it
Easy of Entry
It is very easy to enter or exit
Similarity of products
Products are nearly the same in a market
Control of price
Firms set prices for products but often have sales to draw attention to their product

13. Oligopoly
Is when there are few firms in a market and they are able to act like a monopoly
Prices are set by a price leader
A firm that is followed by others when it changes the price
New firms need lots of capital to enter the market

14. Oligopoly Continued Size of market
Companies have a lot of control over market because there are only a few firms in the market
No firm has complete control of the market
Easy of Entry
It is difficult to enter the market because the other firms have so much control
Similarity of products
Products are nearly the same in a market
Control of price
Firms set prices for products like a monopoly
When a price leader changes prices the other firms follow

15. Monopoly Is when a market is controlled by a single firm
That firm is able to block other firms from entering the market by controlling prices or materials
People must purchase goods from the single source are do without

16. Monopoly Size of market Easy of Entry Similarity of products
A single firm has complete control over the market
Easy of Entry
It is almost impossible to enter the market
Similarity of products
Products are the same in a market
Control of price
A firm sets prices for products

17. Chart It Out
Place the following examples (letter only) on line where they belong
Nike and basketball shoes
Entergy in Tangipahoa Parish
Burger king
Google
A new car manufacturer
Monopoly
Perfect Competition

18. Check It Out
In the Space provided describe each market’s control of the four categories.
Size of Market
Ease of entry
Similarity of Product
Control over Price
Perfect Competition
Monopolistic Competition
Oligopoly
Monopoly

19. Competition Consumers and Producers
Part 2

20. Unwrap the Objectives Factual: Define Producers and Consumers
Conceptual: Explain how competition affects both Producers and consumers
Communicative: Describe how competition impacts prices for consumers

21. Agenda Unwrap the Objective Lecture Notes You decided Thought Map
Essential Question

22. Essential Question
How does competition impact consumers?

23. Competition Consumers and Producers
Part 2

24. Consumers A person who purchases goods and services for personal use
These are the people that buy things
They also are the people that drive demand
Producers are constantly searching for ways to ensure that consumers spend their money at their firm

25. Producers
A person, company, or country that makes, grows, or supplies goods or commodities for sale
They are the ones that control production in response to consumers demand
They control the supply of goods
They are looking for ways to increase profits

26. Production Efficiency
Production efficiency is an economic level at which the economy can no longer produce additional amounts of a good without lowering the production level of another product
The aim is to find a balance between the use of resources, rate of production and quality of the goods being produced
True production efficiency is only reached when it is not possible to improve performance in one area without doing harm to another. 

27. Quality and Quantity
Quality - The standard of something as measured against other things of a similar kind; the degree of excellence of something.
Quantity - The amount or number of a material or immaterial thing not usually estimated by spatial measurement
In many cases a firm must chose one or the other
Quality generally cost more because better materials and more time is spent in the production
Quantity generally costs less because cheaper materials are used and the supply is higher

28. You decide
If you were a wholesale person, would you rather try to sale a cheap product to a store or an expensive product.
Your salary is based on commission (the more you sell the more you make)

29. Pricing
Is the process whereby a business sets the price at which it will sell its products and services
Things to consider
Your price – what the materials cost you
Your Profit – how much do you want to make on your product
Market Demand – how much do people want your product
Strategy – changes in price to change demand

30. Employment Opportunities
Competition leads to producers looking for more and better workers
This can allow workers to demand more money
All employees are consumers
As consumer wages increase so does consumption

31. Thought Map
Create a graphic organizer on the back of your activity sheet that Illustrates what a producer considers when determining the value of a item and one for what a consumer considers when determining the value of a item.
The Item
Consumer
Producer

32. Technology and Innovation in a Global Economy
Part 4

33. Unwrap the Objectives
Factual: Define Interdependence and specialization
Conceptual: Compare and contrast the advantages of specialization
Communicative: Summarize the role that Interdependence plays in the global economy

34. Agenda Unwrap the Objective Lecture Notes Interdependence game
You decided
Pluses and Minuses
Essential Question

35. Essential Question
How has Technology changed the world economy?

36. Technology and Innovation in a Global Economy
Part 4

37. Interdependence Game
In what place did you start the game (Total Points)
What place did you Finish the Game(Total Point)
How challenging was the game?
What made trading hard?

38. Interdependence Game
Gold – 5 points per unit Oil – 4 points per unit Lumber – 3 points per unit Electronics – 2 points per unit Coffee – 1 point per unit

39. Interdependence Game 2
Gold – 5 points per unit Oil – 4 points per unit Lumber – 3 points per unit Electronics – 2 points per unit Coffee – 4 point per unit

40. Technology Changed the way the global economy works
Global Economy - World-wide economic activity between various countries that are considered intertwined and thus can affect other countries negatively or positively.
Technology has shrunk the world
We can communicate faster
We can get around the world fast
In the past, economic activity took place almost entirely inside of a nation
As technology shrunk the globe, more nations economies became linked

41. Interdependence
The dependence of two or more people or things on each other
As the world grew more connected through technology, economies became linked
In Europe, they use the Euro – a currency that is good in most European nations
The United States get the majority of the oil that we use from other nations
Workers from South America come to perform manual labor in the states and send the earnings back south

42. Interdependence Continued
Exporting work to a cheap location
This occurs when a company builds factories in a country, then sends the product to another to sell the product
Some Interdependence is the result of specialization
This is when one economy is specially equipped to produce one good needs to rely on others to provide it with the other goods they need
Such as a nation with lots of farm land needing to import lumber or steel for construction

43. Competition
While some economies work together through the use of technology, others use it to compete
Technology makes it easier for companies to relocate factories or means of production
This will cause developing nations to fight over major companies
One nation lowers taxes or the minimum wage in order to get a major company to move a factory to their country

44. Outsourcing
This is when a company moves jobs outside of the country that they sell the majority of their products in
When Ford moves a factory to Mexico
Most of Ford’s customers are in the United States, but production is cheaper in Mexico
Outsourcing generally results in mass layoffs or terminations in the original country

45. You decide
How could Ford moving a its plants to a country where work is cheaper help consumers in the States?
How could it also hurt their sales?
Give two example for each.

46. Online Services
In 2012, 5.3% of sales in the United States were online
At the end of 2016, 8.3% of sales in the United States were online.
This is one of the biggest impacts that Technology is having on the economy
With online options, many people are abandoning brick and mortar stores
Most online sales systems are automated and require few works to acquire the sales.

47. Online Services Amazon is one of the largest companies in the world
It delivers products from all over the world to places all over the world
They have even filed a patent on plans to build a flying warehouse

48. Job Displacement
Defined as involuntary job loss due to economic factors such as economic downturns or structural change
As technology grows, more and more people will lose their jobs to outsourcing and new technology
Outsourcing sends jobs to countries were labor is cheaper or workers have better training
Technology reduces the number of workers needed in a plant or factory

49. Specialization
As societies became larger and more complex, individuals began to specialize in different types of jobs
This occurs when workers receive detailed training in a particular aspect of operations
This will increase productivity because specialized workers can do their part faster than people that learn how to do lots of jobs
However, if that specialty is no longer needed, then a person can lose their job to a machine
You will get paid more as long as they need you

50. Pluses and minuses
Create a list of three good things about having a specialized job and two bad things

51. Unemployment’s effect on the Economy
Part 5

52. Unwrap the Objectives Factual: Define the thee types of unemployment
Conceptual: Describe how unemployment impacts the nations economy

53. Agenda Unwrap the Objective Lecture Notes Graphic organizer
Work on amusement park project
Essential Question

54. Essential Question
What type on unemployment do you think has the greatest impact on the economy?

55. Unemployment’s Affect on the Economy
Part 5

56. Unemployment The state of being unemployed
Unemployed people contribute less to the economy because they are spending less
The Government needs to borrow more because tax revenues decrease

57. Structural
Structural Unemployment - unemployment resulting from industrial reorganization, typically due to technological change, rather than fluctuations in supply or demand.
When jobs are lost to new technologies, the oldest workers have the hardest time finding new jobs
Some don’t and the government or family has to step in to help them pay bills
Young workers can be retrained to get a new job

58. Seasonal
Occurs when people are unemployed at certain times of the year, because they work in industries where they are not needed all year round
This has a minor impact on the economy because most people know that it will happen
Workers will need to either save for their off-season or find a different job during that time
Some workers migrate with the seasons to stay employed

59. Cyclical
Is a factor of overall unemployment that relates to the cyclical trends in growth and production that occur within the business cycle
This means that there is a cycle and when the economy is strong, people have jobs but when it cycles down people lose their jobs
This type of unemployment is very bad because it happens when the economy is weak making it worse

60. Frictional
The unemployment which exists in any economy due to people being in the process of moving from one job to another.
This type of unemployment can benefit the economy if the workers are able to get better skills and better jobs and it lets the company hire new workers
Example: When a student graduates from college and gets a professional job, the student may first quit his job at the movie theater.

61. Create a Graphic Organizer
Create a graphic organizer that illustrates the economic impact of the four types of unemployment.