1. Bellringer 4/8/13
Make a list of the four factors of production. (hint: chapter 19 section 1)
Factors Of
Production

2. Bellringer 4/8/13
Make a list of the four factors of production. (hint: chapter 19 section 1)
Labor
Natural Resources
Factors Of
Production
Capital
Entrepreneurs

3. Examples: fertile fields, abundant rainfall, forests, mineral deposits#5
Natural Resources
Examples: fertile fields, abundant rainfall, forests, mineral deposits
Materials that were transformed into something else.

4. Nation’s labor force. Human resources#5
Labor
Nation’s labor force.
Human resources
Physical and Mental efforts put into the production of goods and services.

5. Also called capital goods. #5
Capital
Also called capital goods.
Tools, machinery, and buildings used to make other products.
Capital goods satisfy wants indirectly by aiding in the production of Consumer goods.

6. #5
Entrepreneurs
Individuals who start new businesses.
Individuals who introduce new products.
Individuals who improve management techniques.
Individuals who take risk in order to reap profits.

7. Groups Partner read pp.424-427, then answer p.427 #2-4, 6.
Remember 10 point reading assignment grade also!

8. Bellringer #6 4/9/13
Why are trucks considered a capital good?

9. Cooperative Activity-Capital Goods
You and your partner turn in on one sheet of paper, make sure the date and both names are on it.
Find at least two examples of capital goods that are used in school to provide the service of education.
Would productivity go up or down if these capital goods were not available to our school? Explain why or why not.

10. p.427 #2 How do economists define natural resources?
Economists define natural resources as the “gifts of nature” that make production possible.

11. #3 What are the major functions of the entrepreneur?
The major functions of an entrepreneur are to start new businesses and bring products to market.

12. #4 Is a pizza oven a capital good or a consumer good?
A pizza oven is a capital good because it produces a consumer good. (pizza)

13. #6 Study the table on p.426.
What is the Gross Domestic Product for that particular economy?
The GDP is $10.2 trillion.

14. Bellringer #7 4/10/13
When do economists mean when they use the phrase “standard of living”?
Be ready to explain your answer.

15. Before you read. Let’s define Foreign. Foreign – all other countries.
Answer – “What is a product market?”
A market where final goods and services are bought and sold.
Answer - “What is specialization?”
Specialization is the using resources to produce one or just a few services.
Examples:

16. SPECIALIZATION Individuals who specialize: Businesses that specialize:
As you read complete the chart. S
SPECIALIZATION
Individuals who specialize:
Businesses that specialize:

17. Partners Read pp.428-432 - 10 point partner read assignment.
Complete p.432 #2-6. Answer in complete sentences.

18. Ticket out of the door Don’t use any notes or books.
Do the best you can.
What are the four factors of production?

19. 4/11/13 Bellringer #8
Use each of these academic words in a sentence that reflects the word’s meaning.
#1 Identical
#2 Allocate

20. As you read pp on your own, write two facts for each category of productivity and economic growth.
Productivity
Specialization
Division of Labor
Human Capital
Economic Interdependence

21. Section 2 wrap up (answer in complete sentences)
#1 What are factor markets and product markets?
#2 How does specialization increase production?

22. #1 What are factor markets and product markets?
Factor markets – the markets where productive resources are bought and sold.
This is where consumers (me and you) earn our income.
We earn wages, salaries, tips in exchange for our labor.
Own land? You get rent.
Own Capital? Exchange capital for interest.

23. #1 What are factor markets and product markets?
Product market – this is where producers offer goods and services for sale.
Businesses receive payment from consumers for goods or services.
Businesses use consumer payments to pay for:
Natural resources, labor, capital
Businesses sector is much smaller than consumer sector.

24. #2 How does specialization increase production?
Specialization – concentrating on goods and services you produce better than anyone else.
Specialization is efficient.
When everybody concentrates on what they do well resources are saved and more is produced.

25. p.432 #2-6
#2 Do consumers earn their income in the product market or the factor market?
Consumers earn their income in the factor market.

26. #3 Name three things that government produces.
Three things that government produces are national defense, public housing, public transportation.

27. #4 In what industries or businesses does your community specialize? Why?
Seafood industry – we are close to the Gulf of Mexico, and South Louisiana has many marshes and lakes.
Oil industry – we are close to the Gulf of Mexico where oil has been found.
Tourism – South Louisiana is old, cultural, and very historic.

28. Families buying groceries
#5 Describe three different transactions that could take place in the product market?
Families buying groceries
Product Market
Buying a new car
Buying jeans from the mall

29. #6 Study the chart on p As a consumer, what role do you play in the circular flow of economic activity?
A consumer exchanges labor for income and income for goods and services.

30. You Labor (work, job, career) Income (money)
Goods and services (buy stuff)

31. Bellringer #9 4/15/13 Answer the following in a complete sentences.
Do not look in the text or your notes for an answer.
“Explain everything you know about specialization”

32. Capitalism and Free Enterprise
Adam Smith – Scottish philosopher and economist.
The Wealth of Nations (1776)
“invisible hand” controls the economy.
When individuals are left on their own they will work for the own self-interest.
Individuals would use resources efficiently and thus achieve maximum good for society.

33. Things you need to know before you read!
Capitalism
Private citizens own and use the factors of production - to seek profit.
Free Enterprise
(American economy) Competition is allowed to flourish with a minimum of government interference.

34. Things you need to know before you read!
Consumer sovereignty
The word sovereignty refers to “a king or a queen”
The consumer is king of the market!
The consumer determines which products will be produced.

35. Things you need to know before you read!
Private property rights
We have the freedom to own and use our property as we choose
As long as it doesn’t interfere with the rights of others.

36. Things you need to know before you read!
Profit motive
The driving force that encourages individuals and organizations to improve their material well-being
Responsible for the growth of the Free Enterprise system

37. Things you need to know before you read!
Voluntary exchange
The act of buying and selling freely and willingly.

38. Today’s assignment Partner read pp.434-437
Reading counts as a 10 point assignment grade.
Answer in complete sentences p.437 #2-6.

39. Bellringer #10 4/16/13
Academic Vocabulary. Choose the word that has the closest meaning to the underlined word. Write down both words.
#1 It is this one mechanism that seems to throw the whole system into disarray.
a. Technique b. Group c. Method
#2 I would complete my homework sooner if I had a more immediate incentive.
a. Motivation b. Challenge c. Rule

40. p.437 #2-6 #2 What is a free enterprise economy?
A free enterprise economy is an economy where competition flourishes.
How does consumer sovereignty affect the free enterprise system?
Consumer sovereignty affects the free enterprise system because consumer decisions determine what products businesses will produce.

41. #3 What are the limits of private property rights?
The limits of private property rights are to make sure that they don’t interfere with the rights of others.

42. #4 What economic choices will you be free to make upon graduating from high school?
College? Technical school? Work force?
Where will you live? How will you afford to live there?
Car?
Pay for expenses?

43. #5 Advantages and Disadvantages of competition to buyers and sellers.
Keeps prices low.
buyers
advantages
Keeps the cost of production low. (efficient)
sellers
competition
Must compete against other buyers
buyers
disadvantages
sellers
Forces some out of business!

44. #6 Create a caption for the photo on p.436.
In your caption, indicate how the photo illustrates the characteristic of voluntary exchange.
Let’s here’em

45. Section 3 Wrap Up 4/16/13 Answer in complete sentences.
#1 What is laissez-faire economics?
#2 What are the major features of free enterprise?
#3 What are some of the freedoms of free enterprise.

46. Bellringer #11 4/17/13 Answer the following in a complete sentences.
Do not look in the text or your notes for an answer.
“What is consumer sovereignty?”

47. The Economy and You Consumer Rights and Responsibilities
With every right comes certain responsibilities
Find out as much as you can about a product!
Why? Recognize good quality.
Where can we get the best value for our money?
Don’t rely on stores and businesses to protect you!

48. Protecting consumer rights
“Caveat emptor” – Latin phrase
Means – “let the buyer beware”
Consumerism
A movement to educate buyers about the purchases they make.
A movement to demand better and safer products.

49. Consumer Bill of Rights
The right to a safe product
The right to be informed
The right to choose
The right to be heard
The right to redress (manufacturers payment for damages)

50. Terms
Warranty
The promise made by a manufacturer or a seller to repair or replace a product within a certain time period.

51. Terms Disposable income
The money a person has left after all the taxes have been paid on it.
Discretionary income
The money left over after paying for necessities (food, clothing, and housing)

52. Terms
Charge account
Line of credit in a particular store for regular customers.
Credit card
Consumers pay interest or fees. You get a monthly bill.
Debit card
Payments immediately withdrawn from your account.

53. Terms
Interest
The payment people receive for lending their money or allowing someone else to use their money.

54. Today’s assignment Partner read pp.438-442
Reading counts as a 10 point assignment grade.
Answer in complete sentences p.442 #2-4,6.

55. p.442 #2-4,6
#2 What private and federal help can you receive as a consumer?
Consumers can receive help from the Better Business Bureau (BBB), and many federal agencies provide consumer information. The BBB provides information on producers.

56. #3 What kinds of products are purchased with disposable income?
Necessities such as food, clothing, and shelter are purchased with disposable income.

57. #4 Why do some people buy brand-name products and other people buy generic products?
People purchase brand name products because they insure consistent quality.
People purchase generic products because they offer savings.

58. Brand Names vs. Generics

61. #6 Look at the cartoon on p. 431
#6 Look at the cartoon on p Are the goods being purchased necessities (needs) or are they discretionary (wants)? Explain.
The goods appear to be luxuries so they are discretionary purchases.

62. Ticket out of the door Don’t use any notes or books.
Do the best you can.
What are the four factors of production?