1. 1.Economics 2.need 3.want 4.law of scarcity 5.producer 6.consumer 7.factors of production 8.supply demand law of supply law of demand price equilibrium point surplus shortage Economic interdependence Economics unit starts on page 460. Due Friday 12/3

2. What is “The Economy” The Economy is the interaction between Producers and Consumers Producer: Those who make or manufacture goods or services to sell. Consumer A person who buys or rents goods or services.

3. Bellwork Open notebooks and date 12/13 Copy down the following questions in your notes, skipping a line between each. 1.What are the two main types of economies? Command(Communism) and Free Market(Capitalism) 2.What is the difference between them? Economic decisions are made by the government vs. the free interaction between producers and consumers.

4. More Communism (Command Economy) Government Interference Less Capitalism (Free Market) Socialism

5. Government Interference in free market How: Taxes Tariff Laws Price Ceiling Price floor Patents Why: Protection of: Defense, S.S, govt. programs, etc. American Products the environment People/Jobs Innovation/Technology

6. What is Land? What is Labor? What is Capital? What is Management? Reading 4 p. 469 What do we have to work with? Bellwork 12/8: Open your notebooks, date them 12/8 and copy down the following 4 questions skipping a line between each.

7. Big Question How do Producers(suppliers) set the price for their good or service? A: Price is determined by demand. Initial price is set by competition and factors of Production

9. Open your notebooks and date them 12/9 Answer the following question: What information do producers use to set their initial prices? A: Competition, Factors of Production

10. Paragraph 1 A summary about the article that you just read. Include the 5 W’s in your summary. (5-7 Sentences) Paragraph 2 Your opinion or reaction to the article. (5-7 Sentences) Include 1 or 2 lessons you could learn from this article. Be sure to include the following key terms in your two paragraphs (definitions are in visual vocab sheets): Supply Demand Producer Consumer Scarce

11. Bellwork Open notebooks and date 12/13 1.How is price determined in a free market economy? Price is determined by how much producers are willing to produce and how much consumers are willing to consume.(Law of Supply/Law of Demand)

12. o How does scarcity influence the decisions people make? o What is the difference between a need and a want? o How does Opportunity Cost and the Law of Scarcity effect decision making? o Where do different economies fall on the economic spectrum?

13. o How does surplus and shortage influence price? o How does supply and demand affect price in a market economy? o Why is economic interdependence an important concept in today’s world economy?

14. Bellwork Open notebooks and date 1/2/13 1.Open notebook, date them CORRECTLY, and discuss with neighbor your break.

15. Bellwork Open notebooks and date 1/3/13 Open notebook, date them CORRECTLY. Answer the following questions in your notebooks As a middle school student, are you economically interdependent on anyone? If so who and how? As a community(Chester County) are we economically interdependent on anyone? Who and how? As a nation are we economically interdependent on anyone? Who and how?

16. Working with Supply/Demand Use the supply/demand schedule to create a graph and plot both the supply and demand curve. Be sure to label both curves as well as the X and Y axis. In addition label the equilibrium point on the graph. The approximate equilibrium price of Gap Jeans is ______________. Supply/Demand Schedule For Gap Jeans Quantity Quantity Price Supplied Demanded $60150 20 $40120 40 $20 80 80 $10 20 100 $5 10 200