1. Why Semester Economics?
Using the principles discussed in this unit, you’ll be able to describe the financial world around you and make sound personal and business decisions.

2. It’s also a required course
But WHY is it required?

3. Because Studying ECONOMICS . . .
Helps You to Decide Who to Vote For in an Election
Helps You to Understand Your Boss’ Thinking
Helps You to Make Money Every Day

4. The Benefits of Studying ECONOMICS
Helps You to Understand World News
Helps You Participate in Our System, and
Helps You to Spend Your Money Wisely

5. The Benefits of Studying ECONOMICS
But, these young folks from over the pond say it best
For more on “Why Study Economics”

6. Be Able to Define Economics
OBJECTIVE
Be Able to Define Economics

7. ECONOMICS
The Process of Making Decisions to Satisfy Unlimited Wants & Needs Using Limited Resources

8. ECONOMICS
The Process of Making Decisions to Satisfy Unlimited Wants & Needs Using Limited Resources

9. ECONOMICS
The Process of Making Decisions to Satisfy Unlimited Wants & Needs Using Limited Resources
What the Heck
Does That Mean?

10. ECONOMICS The Process of Making Decisions To Satisfy
Unlimited Wants & Needs
Using Limited Resources

11. ECONOMICS All Together Now, Say It With Me. . . .
“The Process of Making Decisions To Satisfy Unlimited Wants & Needs Using Limited Resources.”

12. ECONOMICS
“The Process of Making Decisions To Satisfy Unlimited Wants & Needs Using Limited Resources.”
But how could you state this definition more simplistically?

13. ECONOMICS
Economics is Making Decisions So That I . . .

14. Economics is Making Decisions So That I . .
Get the Most for the Least!!!

15. We Get the Most for the Least!!!
ECONOMICS
We Get the Most for the Least!!!
Economics is Making Decisions So That I . .
Crash Course Economics
Starting at 1:50
End at 3:16

16. What Are Your Economic Decisions?
Should I Get Out of Bed in the Morning?
What Classes Should I Take?
What Type of Car Should I Buy?
What’s For Dinner?
Who Should I Vote For?

17. EPF 1 - The student will demonstrate knowledge of basic economic concepts and structures.

18. What Are Your Economic Decisions?
Seed Question
What is an economic decision you have had to make in your life?

19. Three Important Economic Concepts
Rewards Costs Decisions

20. Three Important Economic Concepts
Rewards - Benefits
(What I Get Out Of It)
Costs - What Resources I Give Up
(Also Called “Trade Offs”)
Decisions - Our Choices

21. Be Able to Provide Examples of . . . Benefits Economic Resources
OBJECTIVE
Be Able to Provide Examples of . . .
Benefits
Economic Resources

22. Benefits
What a Decision Will Do For Me:
(Make Me $$$ for example)

23. Benefits What a Decision Will Do For Me:
(Give me a Sense of Relaxation)

24. Benefits
What a Decision Will Do For Me:
(Give Me Joy)

25. Benefits
What a Decision Will Do For Me:
Give Me Personal Satisfaction

26. Benefits
What a Decision Will Do For Me:
Give Me Confidence

27. Benefits
What a Decision Will Do For Me:
Recognition By My Peers

28. Three Economic Resources
LAND LABOR CAPITAL
&

29. Three Economic Resources
LAND
Natural Resources
LABOR
People with Skills
CAPITAL
Money or things . . .
&

30. Fourth Economic Resources???
ENTREPRENEURS
LAND
Natural Resources
LABOR
People with Skills
CAPITAL
Money or things . . .
&

31. Fourth Economic Resource???
ENTREPRENEURS
LAND
Natural Resources
LABOR
People with Skills
CAPITAL
Money or things . . .
People Who Own & Operate Their Own Business
&

32. Fourth Economic Resource???
ENTREPRENEURS
People who own & operate their own business
These 4 things together =
“The Factors of Production”
LAND
Natural Resources
LABOR
People with Skills
CAPITAL
Money or things . . .
&

33. People who own & operate their own business
Economic Resources
ENTREPRENEURS
People who own & operate their own business
What makes these resources particularly valuable is their relative scarcity
LAND
Natural Resources
LABOR
People with Skills
CAPITAL
Money or things . . .
&

34. People who own & operate their own business
Economic Resources
ENTREPRENEURS
People who own & operate their own business
LAND
Natural Resources
LABOR
People with Skills
CAPITAL
Money or things . . .
What makes these resources particularly valuable is their relative scarcity
&
means that we do not have enough resources to satisfy all our wants and needs.

35. What Are Your Economic Decisions?
Seed Question
What in your life would you describe as your economic resources, desired rewards, and most difficult to give up costs?

36. Other Important Economic Concepts
Opportunity Costs - the loss of potential gain from other alternatives when one alternative is chosen Unintended Consequences - outcomes that are not the ones foreseen and intended by a purposeful action

37. Other Important Economic Concepts
Marginal Benefits - the additional satisfaction or utility that a person receives from consuming an additional unit of a good or service Marginal Costs - the cost added by producing one extra item of a product.

38. How Does a Country Make its Economic Decisions?
QUESTION
How Does a Country Make its Economic Decisions?

39. Through the Use of an Economic System
ANSWER
Through the Use of an Economic System

40. Through the Use of an Economic System (or Process Perhaps?)
ANSWER
Through the Use of an Economic System (or Process Perhaps?)

41. OBJECTIVE
Be Able to List the Three Basic Economic Questions Every Country’s Economic System Must Answer

42. Three Basic Economic Questions
What Should We Produce?
How Should We Produce?
Who Gets What We Produce?

43. OBJECTIVE
Be Able to List the Three Basic Economic Questions Every Country’s Economic System Must Answer
They’re not much different than the questions you have to make in your own life

44. OBJECTIVE
Be Able to List the Three Basic Economic Questions Every Country’s Economic System Must Answer
But we’re going to look at the questions from a much larger perspective, from that of an entire country’s and that country is called . . .

45. OBJECTIVE
Be Able to List the Three Basic Economic Questions Every Country’s Economic System Must Answer
(The Kingdom of Mocha)

46. OBJECTIVE
Be Able to List the Three Basic Economic Questions Every Country’s Economic System Must Answer
(In the Kingdom of Mocha)
Seed Question: In the Kingdom, . . .
What did the residents produce?
How did they produce?
Who received what they produced

47. OBJECTIVE
Be Able to ANSWER the Three Basic Economic Questions Every Country’s Economic System Must Answer
(On Your Own Island)
Seed Question: In your Kingdom, . . .
What will the residents produce?
How will they produce?
Who will receive what they produced?

48. OBJECTIVE
Be Able to ANSWER the Three Basic Economic Questions Every Country’s Economic System Must Answer
(On Your Own Island)
Seed Question: In your Kingdom, . . .
What will the residents produce?
How will they produce?
Who will receive what they produced?
TOUGH CALL?
But that’s essentially what we’re asking our government to do, answer these questions!

49. OBJECTIVE
Be Able to Identify the Three Primary Economic Systems Used in the World Today

50. Economic Systems of the World
Free Enterprise
Capitalism
Market Economy
Socialism
Mixed Economy
Democratic Socialism
Communism
Planned Economy
Command Economy

51. OBJECTIVE
Be Able to Describe the Important Characteristics of Each Type of Economic System

52. Important Characteristics of All Economic Systems
Allowance for Business Ownership

53. Important Characteristics of All Economic Systems
Production of Consumer Products

54. Important Characteristics of All Economic Systems
The Amount of Competition

55. Important Characteristics of All Economic Systems
The Amount of
Employment Available

56. Important Characteristics of All Economic Systems
Private Property Rights

57. Important Characteristics of All Economic Systems
Profit Potential

58. Important Characteristics of All Economic Systems
Social Services Available

59. OBJECTIVE
Using the Important Characteristics of All Economics Systems, Describe Each Economic System

60. Primary Economic Systems

61. Primary Economic Systems
Using a loose leaf sheet of paper, make a chart like this one please. Turn the paper so it offers a “landscaped” (sideways) orientation .

62. OBJECTIVE & ASSIGNMENT
Based on your chart, be able to identify two advantages & two disadvantages of each economic system

63. What Economic System Do We Use in This Country?
QUESTION
What Economic System Do We Use in This Country?

64. The Free Enterprise System
ANSWER
The Free Enterprise System

65. The Free Enterprise System
ANSWER
The Free Enterprise System
As described by Adam Smith in
The Wealth of Nations

66. The Free Enterprise System
ANSWER
The Free Enterprise System
As described by Adam Smith in
The Wealth of Nations

67. The Free Enterprise System
ANSWER
The Free Enterprise System
As described by Adam Smith in
The Wealth of Nations
Three Major Points
Division of Labor
The Nature of Wages
Foreign Markets

68. The Free Enterprise System
ANSWER
The Free Enterprise System
As described by Adam Smith in
The Wealth of Nations
And
Inventor of the phrase
“The Invisible Hand”

69. The Free Enterprise System
Seed Question
What in our country’s history led us to using the Free Enterprise System?

70. Studying Using Quizlet https://www.youtube.com/watch?v=VyK09manjFU

71. Story
A Lesson on Socialism "An economics professor said he had never failed a single student before but had, once, failed an entire class. The class had insisted that socialism worked - and that no one would be poor and no one would be rich, a great equalizer for all, for society. The professor then said ok, we will have an experiment in this class on socialism.
He said that all grades would be averaged and everyone would receive the same grade so no one would fail and no one would receive an A. After the first test the grades were averaged and everyone was given a B. The students who studied hard were upset, and the students who studied little were happy. But, as the second test rolled around, the students who hadn't studied much for the first test had studied even less, and the ones who studied hard weren't motivated to study hard again, and they decided they wanted a free ride too; so they studied little. The second Test average was a D! No one was happy. When the 3rd test rolled around the average was an F.
The scores never increased as bickering, blame, name calling all resulted in hard feelings and no one would study for anyone else. All failed .... and the professor told them that the socialism they wanted would ultimately fail, as they had, because the reward of success normally goes to those that work harder, but when government takes the reward away; few will try so no one will succeed."