1. Bell Ringer
List in your notes anything you know about economics.

2. Economics

3. Essential Questions What are some institutions in an economic system?
How do they work together?

4. Economic System

5. The Different Institutions
Business Firms
Banks
Government Agencies
Labor Unions
Corporations

6. Corporations Business organization owned by stockholders
Multiple companies organized as a single business
i.e. 3M, ABC, CBS, NBC, Nike, Under Armour, Campbell Soup, Chevron, Office Depot

7. Business Firms
A commercial organization that sells goods or services for a profit
Can be a corporation

8. Banks
Institution that receives, lends, exchanges, and safeguards money
i.e. Bank of the West

9. Government Agencies Administrative unit of the government
i.e. Federal Deposit Insurance Corporation, Securities and Exchange Commission, IRS

10. Labor Unions
Organization of wage earners or salaried employees who protect each other from and deal with employers
i.e. AEA, NEA

12. Describe the different economic institutions.
Bell Ringer
In your notes:
Describe the different economic institutions.

13. What is… The relationship between these institutions? Or
How do they work together?

14. The Relationship… Labor unions protect the worker/consumer
Allow workers to have free time and (some) money

15. $ Which allows… People to place their money into banks
That lets them save money $

16. Or…
Invest their money in corporations
Where they become share holders

17. These corporations… Enter into contracts with other companies
Creating business firms

18. Which are regulated by…
Government agencies
That set policies and rules businesses are supposed to follow

19. In order to…
Protect the consumer/laborer
Who is a member of the union

20. Inflation

21. What is it?
General increase in prices while purchasing value of money declines

22. Impact
Can have a negative impact on society when prices of goods and services rise faster than wages
Think of a balloon as it is being blown up and pops because there is too much air in it

23. Bell Ringer In your notes:
Draw a picture or diagram showing the relationship between the economic institutions

24. Interdependence

25. Essential Questions
What is economic interdependence? How does it affect the economic development of nations?
What are some examples of economic agreements between nations? How have they affected the economic development of those nations?

26. Interdependence
The reliance of nations on each other for economic growth

27. Nations
People of multiple races and cultures organized into a single state/country

28. Economic Development
Progress in an economy and general improvement in living standards
New technologies
Transition from farming to industry

29. N.A.F.T.A. North American Free Trade Agreement
1/1/1994: Remove trade and investment barriers between U.S., Canada, and Mexico

30. European Union
Economic and political association of European countries
Internal free trade and common external tariffs
28 countries
16 use the Euro for currency

31. International Monetary Fund
1945
Oversees international monetary systems and exchange rates
Promote positive trade relationships between nations

32. World Bank Controls distribution of economic aid among member nations
Works to alleviate world-wide poverty

33. How does… Interdependence :
Member countries depend on one another to obtain products and goods they cannot produce
N.A.F.T.A.?
E.U.?
World Bank?

34. Bell Ringer In your notes:
Explain N.A.F.T.A. and identify the three member countries

35. Natural Resources and the Economy

36. Essential Questions What are natural resources?
How does the availability and distribution of natural resources impact the economy?

37. Natural Resources Materials that occur in nature
Are essential or useful to humans
Trees
Oil/Fossil Fuels
Coal
Natural Gas
Water
Fruit
Animals
Wind
Fire

39. Impact To have an influence or effect on something
Can be physical or influential

40. Availability Ready for use or service
How ready is a resource to be used by people?
Does something have to be done to the resource?

41. Distribution Frequency of occurrence of a resource in a natural area
How available is a resource in a given area?

43. The economy…
Is impacted by the quality of and access to natural resources SO
What happens if there is a scarcity of a resource?

44. What do you think???
How does the availability of natural resources impact economic interdependence?

45. Personal Finance

46. Essential Questions What is scarcity?
How does scarcity influence personal financial choices?
What is a personal budget?
How do fixed and variable expenses influence a personal budget?

47. Personal Financial Choices
What do we do with our money?!
Save it
Invest it
Budget ourselves
Spend it

48. Scarcity Availability of money
Most of our financial choices are affected by scarcity
What is it called if there is a lot of money in the system?

49. Inflation Increase in amount of money and credit
May cause a general rise in prices of goods and services

50. Budgeting
Financial plan based on the amount of money available for spending

51. Personal Budget
A plan for using money that is earned

52. Savings Amount of money you don’t spend over time
Can be kept in a bank
Savings Accounts
CD’s

53. Investing
Risking money to make a future profit
Stock Market

54. Credit
Buying on Credit: Money banks or credit card companies give to people
Short-term loan
Must be paid back over time

55. How would…
Scarcity of money impact your ability to save money, invest money, or get a credit card?

56. Fixed Expenses Expenditures that occur consistently Car Payment Rent
Student Loans

57. Variable Expenses Expenditures that can change Cell/internet bill
Credit Card
Groceries

58. How… Do fixed and variable rates influence your personal budget?
Can we create a budget consisting of both rates?

60. What is it?
The amount of goods and services that are available for people to buy compared to the amount of goods and services that people want to buy
If less of a product than the public wants is produced, the law of supply and demand says that more can be charged for the product.