1. Agenda- 3/22 Warm-up: PPT worksheet (LS) Start Lecture Ch. 2 (RS)
“Econ Productions” PPF WS (LS)
HW: Finish any incomplete work, organize notebook

2. Warm-up (left-side)
After High School you have one of the following 2 choices to make:
1) 2-year vs. 4-year college Or
2) College vs. start working/Military
Create a Decision Making Chart for the choice you need to make – use details

3. Over $750,000 difference in income over 40 years of working.

4. Economic Systems and Decision Making
Chapter 2
Watch:
Crash Course Video Intro: Economic Systems

5. Did you know? (Read don’t write ; )
In the United States, producers usually make their own economic decisions.
But during WWII the US Govt. required the use of more resources to be utilized to make weapons (planes, bombs, etc.) for the war instead of for household items (cars, ovens, etc.)

6. How we really won the War… (Read don’t write ; )
Converting U.S. manufacturing from consumer goods to military goods allowed America to make planes and ships faster than they could be shot down or sunk and thus win WWII.

7. Part One: Economic Systems
Defined: “The organized way a society provides for the wants and needs of its people”
1. Traditional
2. Command (Planned)
3. Market

8. Traditional Economies
In a traditional economy, roles and economic decisions are defined by custom.
Examples include the Australian Aborigines, Northern Canada’s Inuits, and tribes of Africa & S. America

9. Traditional Economies
Advantages
Everyone knows which role to play
There is little uncertainty about WHAT, HOW, and FOR WHOM to produce
Disadvantages
Discourages new ideas & new ways of thinking
Lack of progress leads to a lower standard of living than in other societies
Watch: Secluded Cultures

10. Command (Planned) Economies
In a command economy, a central authority determines WHAT, HOW and FOR WHOM to produce.
Command economies include North Korea, Cuba, the former Soviet Union, and the People’s Republic of China.

11. Command Economy Disadvantages Consumer needs may not be met
Hard work not rewarded
New ideas, individuality discouraged
Requires a big bureaucracy which consumes resources & delay decisions
Advantages
The ability to drastically change direction in a relatively short period of time
Many basic health & public services are available at little or no cost
Watch: North Korean food shortage video

13. Left-side Journal Write
In what ways are the traditional and command economies alike? In what ways are they different?

14. Market Economy
In a market economy, producers and consumers determine WHAT, HOW, and FOR WHOM to produce. In each market transaction, the consumer’s dollar acts like a vote ensuring that producers continue to bring to market the goods and services consumers want to buy.
Examples include the United States, Canada, South Korea, and much of Western Europe.
(Read) Watch the video below to see the difference the type of system makes – N. Korea=Command (no free market) vs. S. Korea, which has the same resources, just different system. With that, you get this ; )
Watch: South Korea video

15. Market Economy Advantages Disadvantages The ability to adjust & change
Individual freedom & initiative promoted
Little govt. involvement
Wide variety of goods & services created
Happy consumers!
Disadvantages
Inability of the market to meet every person’s basic needs
Don’t do a great job providing some important services like education & health care
Some uncertainty & possibility of failure
Watch: Capitalism vs. other economies – Cow Style

16. Homework Assignment
Economic Productions PPF WS (LS)

17. Agenda – 3/23 Continue & Finish Ch. 2 Lecture Ch. 3 Guided Reading WS
Update your Notebooks with any spare time – Test & Notebook turn in the Thursday after Spring Break ; )

18. American Free Enterprise
CAPITALISM is a market economy in which private citizens own the factors of production. There is LIMITED government interference and businesses are free to compete

19. Capitalism vs. Free Enterprise Though similar, not the same:
Private ownership of resources
Free Enterprise =
Unhindered use of privately owned resources to earn profits

20. Characteristics of American Free Enterprise
Economic Freedom –
People: choose job, employer, location
Business: choose workers, product, price
Voluntary Exchange -
the act of Buyers & Sellers freely & willingly engaging in market transactions

21. 3. Private property rights-
Allows people to own & control their possessions as they wish
(incentive to work, save & invest)

22. 4. The Profit Motive – encourages people & businesses to improve their material well-being and is largely responsible for the growth of the free enterprise economy
5. Competition – struggle among sellers to get customers = better prices! (Yeah, Wal-Mart!, Yeah, Target!)

23. Homework Re-teaching 1-2 WS (LS)
As well as make sure 3 worksheets are done headed into the weekend!