2. 1 Personal Economic Analysis The study of the roles people play in an economic system. Worker Citizen Consumer

3. 2 Free Enterprise System Consumer Roles In the US & Global Economy

4. 3 Who Wants to Buy? Write down several things that you have to buy this week Write down some things you would like to buy this month What is the difference?

5. 4 Economics Today Economics Definition study of the process that involves choice making as people try to satisfy needs and wants

6. 5 Economics Today Unintended Effects Things don’t always go as planned Do they matter? YES!! Think: Effects both intended and unintended

7. 6 Costs & Benefits Everything has a cost Opportunity costs (choices!) Examples?? Economics Today

8. 7 Opportunity Cost What is given up to do something different. Save my money or go on Vacation?

9. 8 Economics Today What is Scarcity? (Needs) Wants --> utility Tangible (goods) vs Intangible (services) Unlimited wants - Limited resources

10. 9 Scarcity --->>> Choices Cannot have both choices Leads to ----------------------- ------>>> Economics Today

11. 10 Economics Today

12. Poll Everywhere Review from Day 1 11 If you have UNLIMITED texting… You can use Poll Everywhere

13. How To Vote via Texting 1.Standard texting rates only (worst case US $0.20) 2.We have no access to your phone number 3.Capitalization doesn’t matter, but spaces and spelling do TIPS EXAMPLE

14. How To Vote via PollEv.com Capitalization doesn’t matter, but spaces and spelling do TIP EXAMPLE

15. How To Vote via PollEv.com/username Capitalization doesn’t matter, but spaces and spelling do TIP EXAMPLE

16. How To Vote via Twitter 1.Capitalization doesn’t matter, but spaces and spelling do 2.Since @poll is the first word, your followers will not receive this tweet TIPS EXAMPLE

17. Don’t forget: You can copy- paste this slide into other presentations, and move or resize the poll. Poll: Which of the following is not scarce?

18. Don’t forget: You can copy- paste this slide into other presentations, and move or resize the poll. Poll: What happens to price when a good become...

19. Don’t forget: You can copy- paste this slide into other presentations, and move or resize the poll. Poll: The study of the process that involves c...

20. Don’t forget: You can copy- paste this slide into other presentations, and move or resize the poll. Poll: Pat says, "If I didn't go to the movie t...

21. Don’t forget: You can copy- paste this slide into other presentations, and move or resize the poll. Poll: Which of the following can affect the he...

22. 21 Review ACTIVITY How to spend $1,000.00? Id the economic concepts of scarcity, choice, and opportunity cost you saw in the discussion. Economics Today

23. 22 LAND LABOR CAPITAL ENTREPRENEURSHIP Economics Today

24. 23 $$$$ (cost) for these resources Land --> Rent Labor --> Wages, Salaries Capital --> Interest Entre --> Profits Economics Today

25. 24

26. Hmm… Imports Exports Outsourcing Tariffs 25

27. 26 Global Effects Does what’s happening in the rest of world effect the US? You Bet!! But How?

28. 27 Global Economy Why is this international trade so important? Think about those things we would not have Think about what other countries wouldn’t have

29. 28 Global Economy Have computers changed the way business is done?

30. 29 Global Economy Which countries are the most economically stable? Why?

31. 30 How Do We Measure Economic Growth? Personal Income Consumer Price Index Gross Domestic Product Inflation Unemployment Rate

32. 31 Gross Domestic Product Consumer Spending + Government Spending + Business Investment +Foreign Trade =GDP Total value of all final goods and services in an economy

33. 32 GDP-Where do we count it?

34. 33 What is Inflation? When Prices Increase A dollar cannot buy as much

35. 34 Inflation What causes an increase in prices? Change in interest rates Surging economy

36. 35 Inflation Effects Who is Hurt by Inflation? Who is Helped by Inflation?

37. 36 A retired person who lives on fixed interest from bank certificates of deposit (CDs)

38. 37 A family that bought a house and has a fixed interest rate mortgage

39. 38 A retired teacher whose income comes from a fixed income pension?

40. 39 A two income family. The wife is a medical doctor, and the husband is a financial analyst?

41. 40 Government & the Economy

42. 41 A NATION AT WORK HOW WELL ARE WE DOING?

43. 42 Labor Force Unemployment Underemployment Supply, Demand, Employment EMPLOYMENT

44. 43 Our Free Enterprise System The Business Cycle Recurrent swings (up and down) in real GDP Prosperity/Peak Recession/Contraction Recovery/Expansion Depression/Trough

45. 44 Our Free Enterprise System The Business Cycle prosperity recession depression recovery years ---->>

46. 45 Long-term GDP trend

47. 46 Our Free Enterprise System prosperity What conditions would exist in an economy if there was: Prosperity/Peak Recession/Contraction Recovery/Expansion Depression/Trough

48. 47 Economic Policies Supply & Demand

49. 48 Candy Auction! Supply & Demand

50. 49 Quantity Demanded The number of products a consumer is WILLING & ABLE to buy at a specific price.

51. 50 Law of Demand Amount consumers are willing & able to buy at all prices As P D

52. 51 What changes Demand? The # of Buyers Real Income Price of Related Goods Price of Substitutes Fads & Fashion

53. 52 Quantity Supplied The number of products a business is WILLING & ABLE to sell at a specific price.

54. 53 Law of Supply Amount businesses are willing & able to produce at all prices As P S

55. 54 What changes Supply? # of Sellers (competition) Price of Factors of Production Price of Related Goods Price of Substitutes Government Policy Natural Disaster

56. 55 So What’s the Point?! Equilibrium--the number demanded of a product equals the number of sold of a product. We want the perfect situation

57. 56 Equilibrium P Q D S

58. 57 What if it’s Not Perfect? Surplus When supply exceeds demand Shortage When demand exceeds supply

59. 58 Surplus P Q D S

60. 59 Shortage P Q D S

61. 60 Price Elasticity of Demand Measure of the change in Demand as a result in the change of prices

62. 61 Elastic vs. Inelastic Large change in demand w/ a change in price Luxuries Many substitutes

63. 62 Elastic vs. Inelastic Little or no change in demand w/ a change in price Necessities not many substitutes

64. 63 Economic System What type of economic system do we have here in the US? What other types of systems exist in the world? Market Command Traditional

65. 64 Capitalistic Economy Element of Market Economy Profit Motive Standard of Living

66. 65 Devilonia Freedom Efficiency Growth Security Opportunity Stability Equity 7 Economic Goals

67. Freedom consumers have a choice in the products and services they use. 66

68. Efficiency what is the best use for the available resources? 67

69. Growth where do we want to be economically years from now? 68

70. Security should our citizens be financially self reliant or should the government provide for them? 69

71. Opportunity Should our citizens make decisions based on their own experiences and they will find pleasure in? 70

72. Stability Is the value of our currency a concern of ours? 71

73. Equity Who should have the authority and how do we distribute power throughout our citizens? 72

74. 73 Review Game Directions 1 Reader (Can also challenge) 1 Answer Sheet Holder 1 Question Picker 1 Challenger Each position rotates every question!! (Rotate clockwise)

75. 74 Test Wednesday!! Bring a pencil Study your notes/handouts Bring something to do after the test Good Luck!!!