1. 1.What is the Economy 2.How do stores determine the prices of their products? 3.What is the difference between a good and a service? 4.Why do your favorite items go on sale around Christmas? 5.What is the difference between a command and market economy? 6.What is opportunity cost? 7.Why do the most popular items sell out so quickly during the Christmas season? 8.What choices did you make over thanksgiving break that forced you to miss out on something else?

2. Agenda 1.DQ Talk 2.Econ Intro 3.Reading 1

3. 1. Economics: The social science that deals with making choices about our resources, including time 2. law of scarcity: All things are limited 3. Opportunity Cost: In order to get something, you must give something else up 4. The Economy: is all the interactions between Producers and Consumers 5. Producer: Those who make or manufacture goods or services to sell. 6. Consumer: A person who buys or rents goods or services. Grab a key term sheet up front and write the following key terms in the boxes

4. Smart/Successful Producer Smart/Successful Consumer Marketing/Advertising -Persuasive -Differentiate/”improve” their product/service Reviews/online Opinions -Patient -Informed -Good Price/Value Because of the Law of Scarcity, consumers must make choices. Producers do anything they can to convince you that they are your best choice.

5. 1.List any purchases you made as a consumer this weekend. 2.What were the qualities of a smart consumer we talked about last week? 3.Were you a smart consumer this weekend? Why/Why not? Open your notebooks, date them 12/8, and answer the following questions:

6. 1.In paragraph form and in your own words, describe the process the book tells you a smart consumer should go through before making a purchase. 2.List and describe the different resources or agencies that the reading tells you can be used to help you be a smart consumer and/or resolve consumer conflict. (At least 4) 3.Is there anything in the reading that seems out of date? Describe it and how things have changed. Reading 3 pg. 467-469 “Be a Smart Consumer” After reading the passage, answer the following questions on a separate sheet of paper.

7. 1.law of scarcity-All things are limited 2. Opportunity Cost-In order to get something, you must give something else up

8. What is “The Economy” The Economy is all the interactions 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.

9. 1.Economics 2.need 3.want 4.law of scarcity 5.producer 6.consumer 7.factors of production 8.supply 9. demand 10. law of supply 11. law of demand 12. price 13. equilibrium point 14. surplus 15. shortage 16. Economic interdependence 17. Opportunity Cost 18. Recession 19. Depression 20. Gross National Product(GNP)

10. 1.Economics 2.need 3.want 4.law of scarcity 5.producer 6.Consumer 7.Opportunity Cost 8. Command Economy- An economy where interactions between producers and consumers are controlled by gov’t 9. Market- An economy where producers make what consumers want without government interference 10. Traditional-an economy with limited interactions because of agricultural self- sufficiency, which often includes bartering.

11. Daily Question: Why does the government interfere in the free market?

12. Government Interference in free market How: Taxes Tariff(import) Laws Price Ceiling Price floor Patents Why: Protection of People’s Health Environment jobs inventions American Products *Raise money

13. More Communism (Command Economy) Less Capitalism (Free Market) Mixed

16. Key Term Review Use the following key terms to create a 3-5 sentence paragraph. Paragraph should make sense and explain the key term definition. 1.producer 2.Consumer 3.surplus 4. Shortage 5. Opportunity Cost

17. Reading 5: Three Main Types of Economies pg. 471 What are the 3 economic systems according to the reading? What 2 economies are the most common? What is the difference between a command and a market? What type of economy do you think the U.S. has? Explain.

18. 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.

19. What is Land? What is Labor? What is Capital? What is Management? Reading 4 p. 469 What do we have to work with?

20. BackEast Printing and Design LandLaborCapital Management Factors of Producton

21. Bellwork: Hardest DQ of the year 1. Edgar rents a kiosk(one of those annoying little stands in the middle of the mall) in the King of Prussia mall at a cost of 2500.00/month to sell miniature remote control helicopters. He has a part time staff of 2 high school kids that each work 20 hrs/week at 8 dollars/hour. If he can sell each helicopter for 50 dollars, how many will he have to sell to break even for the month of December? 2. If he is able to break even is this business a good decision? Why or why not?

22. Supply The amount of a good or service available at a particular price

23. Law of Supply As prices go up, producers are willing to produce more, as prices go down, they produce less

24. Demand The ability and willingness of people to buy something.

25. Law of Demand As prices go up, people demand less. As prices go down, people demand more.

26. Agenda 1.DQ Talk 2.Key Terms 3.Supply/Demand graphs & Equilibrium Point(price) 4.Creating your own graph

27. Supply and Demand

29. 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 Little toy helicopters is ______________. Supply/Demand Schedule For Little Toy Helicopters Quantity Quantity Price Supplied Demanded $60150 20 $40120 40 $20 80 80 $10 20 100 $5 10 200