2. What are limited resources? What are the 3 economic questions that every society must answer? What are the similarities and differences between the various types of economic systems?

3. Which of these are REALLY necessary for you to survive? (necessary for life!) Therefore, are these things WANTS or NEEDS?

4. Comparing your two lists, first choice to first choice, second choice to second choice, which will you choose in order to have a good life? What did you give up and for what did you give it up?

5. Opportunity cost

6. Something that is given up in order to have something else

7. Even countries have to look at opportunity costs. What are some things that our country has given up in order to gain other things?

9. Should Kansas invest money in the lobster industry? Should Florida invest money in the snow skiing industry? Should Alaska invest money in the citrus fruit industry?  Why? Would the Alaskan crab industry be a good industry for Alaska? Would promoting beaches be a good industry for Florida?  Why?

10. Normally, the availability of natural resources will dictate the answers to the question … what will that region produced?

11. Alaska has the largest Alaskan crab industry in the United States. Florida has the largest tourism industry in the United States. Georgia has the largest peach industry in the United States. Therefore, these states have developed specific industries based on the availability of natural resources. What is this called?

12. What does Alaska specialize in?  How does this help Alaska? What does Kansas specialize in?  How does this help Kansas? What does Georgia specialize in?  How does this help Georgia? What does Saudi Arabia specialize in?  How does this help Saudi Arabia? What does the US specialize in?  How does this help the US?

13. The 3 groups of resources Land Capital Labor Resources divided into 3 groups

14. Resources landLaborcapital

15. Land is not just the soil, but also… Plants Animals Water Metals

16. Resources Land Plants Water Animals Metals oil Laborcapital

17. Labor is the work people do. It includes… Providing goods like…goods …and providing services like…services A butcher, a baker, and a candlestick maker. Entertaining, firefighting, and protection.

18. buildings machines tools …goods used to make other goods But does capital refer to just goods? What other type of capital do we have?

19. How can a country invest in human capital? Investing in education Investing in health care Investing in training people in specific skills How might a country benefit from investing in human capital?

21. Resources Land Plants Water Animals Metals Oil Labor The work people do Goods Services Capital Goods to make other goods Buildings Machines tools Human capital Education Training Health care Make sure your graphic organizer includes this information

22. These 3 groups of resources are also called… Land Capital …the factors of production. Labor

23. Which of these are limited? Land Capital All of them! Labor

25. What will be produced? How will it be produced? For whom will it be produced?

27. Traditional economy Command economy Market economy Mixed economy

28. Folks answer the 3 basic questions by producing what their families have always produced. The government answers the 3 basic questions and tells people what they will produce. Folks answer the 3 basic questions by producing what they want to produce and selling their goods in the market. Some folks produce what they want; the government controls the other. Traditional Command Market Mixed

29. Billy Bob grows corn because his father grew corn, and his grandfather grew corn. Traditional Zululand’s government determined that one village would grow corn and the other peas. Sally Sue sells sea shells and Peter Piper picks prickly peppers and pears. Blueland’s government owns the oil production, but Bobby Jo sells the drills. Command Market Mixed

30. Based on what has been done in the past. The question of “how should goods and services be produced?” is answered by “what have we always done?”  People herd cattle because their families have always herded cattle  People farm because their families have always farmed

31. Government leaders decide the answers to the basic economic questions. The government controls the land, labor, and capital. The government decides what will be produced, how it will be produced, and for whom it will be produced.  And often times …  Where people will work  How much will they be paid

32. Each person answers the 3 economic questions  People buy and sell whatever they like  People decide for themselves where they will work The most important part of a market economy is the market

33. Mixed  Government has some say over 3 basic questions  However, many decisions are made by the people

34. Competition Profit Private property Freedom of exchange How do these elements affect the market system? How would the market system be different if one of these elements were missing? Let’s see how each of these elements impact the market system! I need volunteers!

35. Pure Command Mixed Pure Market

36. Make a list of everything that you know of that can hurt a country’s economy.

37. Natural disasters  Volcanoes / earthquakes  Weather  Flooding  Snow storms  Hurricane Conflict Strikes Boycotts Unemployment Trade barriers Your thoughts … what do you think can negatively affect a country’s economy? Working with your partner, how many elements can you and your partner list?

38. Tariffs Quotas Embargos A tax imposed by a government on imports The limit on a number of items that can be imported into a country. A restriction on foreign trade, usually meant to hurt the other country How do each of these barriers impact the price of a product?

39. What does free trade mean? Who does the US have a free trade agreement with? The absence of trade barriers. Today, the United States has FTAs with 17 countries, such as Israel, Jordan, Canada, Oman, and Singapore to name a few. In 2006, six new FTAs were implemented: with Bahrain, El Salvador, Guatemala, Honduras, Morocco, and Nicaragua.

40. What can we determine about our trading industry based on this chart?

41. Economic system Traditional economy Market economy Mixed economy Command economy Factors of production 3 basic questions of economics Opportunity cost Tariffs Quotas Embargoes Free trade

42. What are limited resources? What are the 3 economic questions that every society must answer? What are the similarities and differences between the various types of economic systems? Answer the following essential questions …

43. Share your notes with a partner to ensure your notes are complete!

44. A good is something that is made by people. A service is action people do for others.