1. Unit One Day

2. Monday, January 29, 2018 Write the day, date, and the year
Write out the questions then write the answer:
Explain Economic Efficiency to a 3rd grader.
In your opinion, which Social Goal of Economics is the most valued by your family? Give your answer and give 2 reasons why.
(Hint: Economic Freedom, Economic Efficiency, Economic Security, or Economic Growth)

3. Macro vs. Micro (3rd, 5th in notebooks)
Macroeconomics
Microeconomics
Definition
Examples

4. Macroeconomics (from the Greek prefix makro-meaning "large" and economics) is a branch of economics dealing with the performance, structure, behavior, and decision-making of an economy as a whole, rather than individual markets. This includes national, regional, and global economies.
Microeconomics is a branch of economics that studies the behavior of individuals and firms in making decisions regarding the allocation of limited resources. Typically, it applies to markets where goods or services are bought and sold.

5. Examples Unemployment rate in the food industry
Unemployment rate in the USA
Consumer choices across the USA
Consumer choices at Hy-Vee
National budget for September
Family monthly budget

6. Answers Unemployment rate in the USA Consumer choices across the USA
Macroeconomics
Microeconomics
Unemployment rate in the USA
Consumer choices across the USA
National budget for September
Unemployment rate in the food industry
Consumer choices at Hy-Vee
Family monthly budget

7. Key Questions for Economic Systems
Who owns the resources?
Who decides what happens to the resources?
What are the decision makers motivated by?

8. 4 Economic Systems
Market Economy Command Economy Traditional Economy Mixed Economy

9. Market Economy
Productive resources are owned and controlled by individuals in the economy
2. Decisions about how resources are to be used are made by numerous individual buyers and sellers in markets.
3. Individuals are motivated by their own self interest.

10. Command Economy
Except for human resources, most productive resources are owned and controlled by the government.
2. Decisions about how resources are to be used are made by central planners of the government.
3. Central planners are motivated by the social goals they establish.

11. Area Market Command Resources Individuals own them all
Government owns them all
Government’s Role
Small role, no overall decisions
Total control of all decisions
Economic Plans
No overall plans
Make 5 year and 10 year plans
Income Distribution
Based on skills, top % get more money
Overall equal distribution
Controlling Prices
Government does not control prices, the market does
Government central planners set and control prices
Private Property
Individual ownership, encouraged to help others
Government owns most property, private owners had more power

12. Two More Economies
Traditional Economy
Mixed Economy

13. Mixed Economy
A mixed economy is defined as an economic system consisting of a mixture of either markets and economic planning, public ownership and private ownership, or free markets and economic interventionism.

14. Traditional Economy People do what has always been done
Little economic growth
Use of primitive tools and methods to harvest food
Found in rural areas

15. Traditional Economy Poster
You will use the information sheet to create an informational poster about a traditional economy
Requirements:
The title traditional economy
Definition of the economy
Characteristics of the economy
4 symbols or memory clues
Must be colored