1. TAKE SEAT WITH PARTNER.  EXAM REVIEW: USE PACKETS: Units 1 & 6
Take all of your review packets out:
Either hard copies from your folder; or
Open them on classroom; I’ve moved each units RP to the top of classroom so you can find it easily
Working with your partner(s):
Use your Unit 1 or Unit 6 notes (these are also now at top of classroom) to EITHER revise OR complete your Unit 1 packet.
If your notes aren’t complete, use mine from our class website:
Show me your completed RP so I can check it off
SHOWING ME EACH COMPLETED PACKET IS WORTH 1/5 of a test grade.
If you and your partner are done with Units 1 & 6, move on to the next unit.

2. WARM UP Lesson Vocabulary:
Unit 7: Trade & Economic Interdependence: A Global Economy Lesson 1: Rich & Poor: Developed & Developing Nations
WARM UP
What other nations in the world would you consider living in? Why?
What do you know about nations & the economies in Europe? Africa? Asia? Central & South America?
ESSENTIAL QUESTIONS (WRITE DOWN!):
Why are some nations economically strong while others are more weak?
Lesson Vocabulary:
developed nations
layoffs
developing nations
worker rights
export economy
human rights
service economy
trade policy
manufacturing economy
sanctions/embargos
Unions
currency exchange rates
Right to work laws
Group of Eight (G8)
Closed shop
outsourcing/offshoring
Open shop
Lesson Skills:
I can describe the basic differences between developed and developing nations

3. Class Website: DEADLINES & HOMEWORK:
Unit 7: Trade & Economic Interdependence: A Global Economy Lesson 1: Rich & Poor: Developed & Developing Nations
Class Website:
DEADLINES & HOMEWORK:
Lesson One: PT 7.1 – Due 12/14
Lesson Two: PT 7.2 Due 12/15
Lesson Three: PT 7.3 Due 12/16
ALL Review Packets DUE: 12/17
UNIT 6 & 7 TEST: THURSDAY 12/17
ECONOMIC SYSTEMS ESSAYS:
Draft was due 12/10
FINAL COPY DUE 12/18
NO LATE SUBMISSIONS WILL BE ACCEPTE
DEADLINE FOR OTHER MISSING WORK:
MONDAY, JANUARY 4th
Lesson 7.1 Performance Task
Create cartoon / concept map showing 3 key differences between developed and developing nations.

4. Quiz 6.9
1. What is the main job of the Federal Reserve Bank?

5. Quiz 6.9
2. What does the Consumer Price Index measure?

6. Quiz 6.9
3. What are two main tools the Federal Reserve uses to regulate monetary policy?

7. Quiz 6.9
4. What should the Federal Reserve do to stimulate economic growth during a recession?

8. Quiz 6.9
What should the Federal Reserve do to control inflation during periods of economic growth?

9. Quiz 6.9 – Match the definitions on the left to the terms on the right.
Total value of all things produced and sold in an economy
When the economy contracts 6 months in a row
Interest rate that the Federal Reserve charges banks
% of money banks must keep in cash
The reason the government can’t just print unlimited amounts of money
Discount Rate
Inflation
Gross Domestic Product
Reserve Requirement
Recession

11. Global Economic Inequality
As you watch, pay attention to:
Differences between “developed” & “Developing nations”
Differences in global wealth and poverty

12. The World Economy
Nations around the world are connected through economics
Nations specialize in certain products and trade with each other
Some nations have bigger economies than others

13. Per Capita Income
Total Gross Domestic Product of a nation divided by its total population
Average income for each person in that economy
Country
Per Capita Income
Qatar (first)
$143,437
United States (10th)
$53,042
China
$9,800
Poland
$21,100
France
$40,375
Mexico
$16,370
Democratic Republic of Congo (last)
$400

14. Global Wealth & Poverty
Developed nations – countries that are fairly well off economically, with strong economic growth and relatively high per-capita income
Developing nations – countries that have little power in the world economy, with low per-capita income and low standards of living

15. Differences in Wealth & Power
Developed Nations
Developing nations
Combined population around 1 billion people
Wealthier
Large GDP
Higher per-capita income
Consume 88% of worlds resources
Manufacturing, information, & service based economies
Combined population around 5 billion people
Poorer
Small GDP
Consume 12% of world resources
Export economies
Natural resources are mined and sold to global companies
Wealth does not stay in the country

16. The World Economy
Nations around the world are connected through economics;

17. Currency Exchange Rates
Each nation has its own currency (its own money)
Depending on the strength of each nations’ economy, its currency gains or looses value relative to the currency of other nations.
Exchange rate – compares the values of one nations currency to the currency in other nations
Examples:
how many pesos (Mexican currency) is each dollar worth?
How many Yen (Japanese currency) is each dollar worth?
How many dollars (American currency) is the Euro worth?
Exchange rates are constantly changing based:
Assessments of each nation’s economy
supply and demand

18. Group of Eight (G8)
Powerful group of 8 developed nations (created in 1975) that work to control the global financial system:
United States
France
Germany
Italy
Japan
United Kingdom (Britain)
Canada
Russia

19. In Industrial Economies
Division of Labor
Every worker does one small part of the big job

20. What are the advantages of this for a company?

21. Advantages
More efficient
Pace of work can increase

22. Automation Replacing human beings with machines Fewer jobs
Lower production costs

23. Workers get downsized/laid off

24. Outsourcing / offshoring
American factories shut down & jobs go overseas
Other countries have cheaper labor and fewer regulations

25. How does this create a problem for developed economies?
Job loss – factories shut down as companies move production to cheaper labor markets overseas
Reduced purchasing power – workers have less money to spend, which can trigger reduced consumer spending

26. Worker Rights
Unions – organizations of workers focused on improving wages and working conditions
Companies sometimes try to shut unions down by moving production to other countries
In the U.S., union membership peaked in the 1970s; average income & purchasing power did as well
As union membership has declined, so have American incomes

27. Performance Task Activity
Go online and research the difference between developed nations and developing nations.
Use graphic organizer to help organize information.
Create (on back of graphic organizer) a concept map / cartoon that uses images and text to show 2-3 key differences between developed and developing nations
WHEN DONE: HAVE YOU COMPLETED ALL YOUR REVIEW PACKETS?
Economics
Going back to Civics & Economics