1. October 20, 2016
Agenda
• Why are nations wealthy? (14)
• Role of Entrepreneurship (15)
• Mixed Economies (16)
Warm-up
• How does investing in resources affect GDP?
Homework: review today’s material

2. Investing in resources (human, capital, or natural) will raise a countries GDP.

3. Unit 4: Economics in SWA
1.Unit 4 Standards
2.Warmup (10/3 – 10/14)
3. Econ. Vocab
4.Productive Resource Chart
5.3 Basic Econ. Questions
6.Resources Take Out
7.Bead Game Debrief
8.Economic Systems
9. Trade Barriers
10. Warmup (10/17 –10/21)
11. Specialization
12. Trade Memos
13. Investing in Resources
14. Why are nations wealthy?
15. Role of Entrepreneurship
16. Mixed Economies
17. Exchange Rates
18. OPEC

4. How Investing in Resources affects GDP Real world examples
GDP increases
Workers become smarter and more productive.
Workers are able to produce high tech products that gain more money in trade.
Japan invests money to improve education.
GDP increases
Better infrastructure makes transporting goods easier.
Easier transportation results in more trade.
United Arab Emirates invests resources in building better roads and ports (infrastructure)
Dictator Robert Mugabe of Zimbabwe spends the nation’s money on mansions and parties, instead of healthcare.
Many workers stay home a lot because they are sick.
Lower worker productivity causes trade to go down.
GDP declines 

5. Five countries form OPEC, the Organization of Petroleum Exporting Countries. Their mission is to control the price of oil by limiting the supply. Oil prices start to rise.
1960s-Most countries in Southwest Asia were poor and wanted to earn more money from the sale of their oil. The average price of gas in the U.S. is 31 cents per gallon.
1970s–Arab countries go to war with Israel, while Americans driving large cars consume a major portion of the world’s oil.
1973-To punish the United States for supporting Israel during the Yom Kippur War, Arab members of OPEC embargo the U.S.
1980s-Fear of being dependent on foreign oil leads the U.S. to develop more American oil fields. Consumers begin conserving gas by driving smaller cars.
The supply of oil in the U.S. drops dramatically, causing the price of gas to skyrocket.

6. Demand falls for OPEC oil. OPEC countries begin to lose money.
1980s-Fear of being dependent on foreign oil leads the U.S. to develop more American oil fields. Consumers begin conserving gas by driving smaller cars.
1990s-The Iraqi invasion of Kuwait results the burning of many Kuwaiti oil fields, reducing the supply of petroleum. Many Americans begin driving SUVs instead of smaller, more fuel efficient cars.
Demand falls for OPEC oil. OPEC countries begin to lose money.
The price of oil begins to rise again.
2000s-OPEC nations begin to coordinate with other large oil producers, like Russia, to further limit the supply of oil.
The price of oil rises dramatically, soaring above $100 per barrel in U.S. gas prices remain well above $3 a gallon.

7. Daily Closing
If a leader throws parties, buys cars and mansions, what happens to GDP?