1. BASIC ECONOMIC CONCEPTS
12.1 Students understand common economic terms and concepts and economic reasoning.
BASIC ECONOMIC CONCEPTS

2. WARM UP: JANUARY 24, 2017
Imagine that you are going into your favorite store. What items are the most expensive? What items are the least expensive? Provide reasons for the price differences.

3. GOODS:
Definition
Consumer good
Capital good

4. Services
Definition

5. Consumers

6. Activity:Copy the chart below and fill in the answers
Activity:Copy the chart below and fill in the answers. Use pages in your textbooks.
Explanation
Example 1
Example 2
Goods:
Consumer/
Capital
Services
Consumer

7. CLOSURE QUESTION
Why are goods, services and consumers an important part of the economy?

8. WARM UP: JANUARY 25, 2017
Why does water which is a necessity have little monetary value and jewelry which is a non- necessity have a higher value?

9. UTILITY Definition: Capacity to be useful and provide satisfaction
People get satisfaction from different things
A good or service has utility for some people
Diamonds are scarce and have utility
Water has utility but is not scarce in most places
Water has less value than diamonds

10. WEALTH Accumulation of tangible products
Nation's wealth=Natural resources, factories, highways, clothing ect.
People’s skills can restore their possessions if their wealth was taken away
If a country loses people, its wealth would deteriorate

11. WARM UP: JANUARY 26, 2017
How are you dependent on the economy? How is the economy dependent on you?

12. Free Enterprise: Consumer durable good: Dishwasher, CD
Consumer nondurable good: Soap, gas
Wealth: Oil reserves, computers
Human capital: Education, ideas

13. The Circular Flow of Economic Activity
Market- Location that allows buyers and sellers to exchange a product
Factor markets- This is where people earn incomes
Entrepreneurs hire labor for wages, acquire land for rent, and borrow money for interest
We participate in the factor market when we go to work and sell your labor to an employee

15. Product Markets
-After people receive income from the resources they see, they spend it in the product market
-This is where producers sell their goods and services to consumers
-Money that people receive from businesses in the factor market returns to business in the product market
-Businesses use this money to produce more goods and services
-Markets serve the link between individuals and business

16. CLOSURE QUESTION
Explain in your own words the circular flow of economic activity.

17. ECONOMICS AGENDA: FRIDAY JANUARY 27, 2017
Learning Objective: Understand Productivity and Economic Growth
Standard: 12.1 Students understand common economic terms and concepts and economic reasoning.
Warm up question
Project Presentations
Productivity and Economic Growth
Closure question
ECONOMICS TEST:
FRIDAY FEBRUARY 3
UNIT 1

18. WARM UP: JANUARY 27, 2017
What do you think makes Qatar, Luxembourg, and Singapore the richest countries in the world?

19. ECONOMICS AGENDA: Monday JANUARY 30, 2017
Learning Objective: Understand Productivity and Economic GrowthStandard: 12.1 Students understand common economic terms and concepts and economic reasoning.
Warm up question
Project Presentations
Productivity and Economic Growth
Closure question
Homework: Questions 1-8 page 17
ECONOMICS TEST:
FRIDAY FEBRUARY 3
UNIT 1

20. PRODUCTIVITY
Definition: A measure of amount of output produced by a given amount of inputs in a period of time
Productivity increases when more output can be produced with the same amount of time.
It relates to labor
Business owners buy the most efficient capital goods
1. How can a factory be more productive?

21. Division of Labor
When work is arranged so that individual workers do fewer tasks than before
Workers who do the same thing every day become proficient in what they do
2. How is this an effective way of working?

22. Specialization
When factors of production perform tasks that can be done efficiently
Different regions of the country specialize in things they do best
3. Give examples of regions in the nation that specialize in different products?

23. Investing in Human Capital
This is the sum of the skills, abilities, health, and motivation of people
Governments can provide education and health care
Businesses can invest in training and programs to improve skills and motivation for its workers
Individuals can complete high school, go to technical school or college
4. Why is human capital important for a growing economy?

25. Economic Interdependence
We rely on others, and others rely on us, to provide goods and services we consume
Events in one part of the country or world can have dramatic impacts elsewhere
Examples: Weather conditions, bad crop years

26. CLOSURE QUESTION
Why do most wealthy nations use the specialization of labor system?