2. Economics 3/14/11 http://mrmilewski.com OBJECTIVE: First day of school administrative stuff. I. Welcome Back II. Attendance III. Distribution of: -syllabus, points, and test dates -textbooks -desks, fans, floor, & bags IV. Homework

3. Last name, First name__-___ New text

4. Important Stuff Web-site: http://mrmilewski.comhttp://mrmilewski.com Desks, fans, floor, & bags Homework Due Monday 3/21/11 1.) Book covered 2.) Syllabus signed and returned Homework Due Tuesday 3/22/11 1.) Chapter#1 Homework 2.) Chapter#1 Review

5. Economics 3/15/11 http://mrmilewski.com OBJECTIVE: Examine the fundamental economic problem & the factors of production. I. Journal #1 pt. A -Read “The Global Economy” p.9 -Answer questions (1-3) p.9 II. Journal #1 pt. B -notes on the fundamental economic problem III. Goods & Service Quiz IV. Homework Due Monday: 1.) Book cover 2.) Syllabus signed and returned

6. Important Stuff Web-site: http://mrmilewski.comhttp://mrmilewski.com Homework Due Monday 3/21/11 1.) Book covered 2.) Syllabus signed and returned Homework Due Tuesday 3/22/11 1.) Chapter#1 Homework 2.) Chapter#1 Review

7. The Fundamental Economic problem is: Scarcity - the condition that results from society not having enough resources to produce all the things people would like to have. Economics - the study of how people try to satisfy what appears to be seemingly unlimited & competing wants through the careful use of relatively scarce resources.

8. Need v. Want Need - a basic requirement for survival & includes food, clothing, and shelter. Want - a way of expressing need.

9. Scarcity Since people have unlimited wants & limited resources, scarcity leads to choices. 1.) What to produce? 2.) How to produce? 3.) For whom to produce? http://www.autolife.umd.umich.edu/Race/R_Overview/Rouge_Plant.htm Ford Rouge Plant

10. The Factors of Production LAND – the gifts of nature LABOR – people with all their efforts & abilities CAPITAL – the tools, equipment, machinery, and factories used in the production of goods & services ENTREPRENEURS – a risk taker in search of profits who does something new with existing resources

11. Goods & Services Goods - an item that is economically useful or satisfies an economic want Services - work that is performed for someone Consumer – a person who uses goods & services

12. Types of goods Consumer good – intended for final use by individuals (personal computer, dishwasher) Capital good – manufactured goods used to produce other goods (robot welder, oven in a bakery, computer in a H.S.) Durable goods – a good intended to last 3 years or more when used on a regular basis (can be both a consumer good or a capital good) Nondurable good – a good that lasts less than 3 years (food, notebook, shampoo) http://www.leaderproduct.com.tw/images/robot.jpg http://www.nerdgirl.com/sights/data/media/82/Image84.jpg

13. Goods v. Services The difference between goods and services is that a good is tangible, services are not. http://www.rotten.com/library/culture/indian-call-centers/cs_center2.jpg

14. Quiz! http://metrolinx-consult.limehouse.com/events/2004/images/web/122786_1_0.jpg

15. Economics 3/16/11 http://mrmilewski.com OBJECTIVE: Examine the paradox of value and the circular flow. I. Journal #2 pt. A -Read the “Business Week Newsclip” p.11 -Answer questions (1-2) p.11 II. Journal #2 pt. B -notes on wealth, circular flow, and Adam Smith III. Homework due Monday! 1.) Book covered 2.) Syllabus signed and returned

16. Value, Utility, & Wealth Paradox of Value – some necessities like water have little monetary value, whereas some non-necessities, like gold, has a much higher value. Scarcity is not enough to create value. It must have utility. Utility – the capacity to be useful and provide satisfaction.

17. Wealth So, for something to have value it must be scarce and have utility. Wealth – the accumulation of those products that are tangible, scarce, useful, and transferable from one person to another. A nations wealth are determined by the total amount of it’s peoples skills (Adam Smith) plus it’s natural resources, capital equipment, stores, houses, and all other tangible assets.

18. The Circular Flow p.15 The Market – a location or other mechanism that allows buyers and sellers to exchange a certain economic product. Factor Markets – where productive resources are bought and sold. Product Markets – where producers sell their goods and services to consumers.

19. Read “Profiles in Economics” p.18 -Answer questions (1-2) p. 18

20. Adam Smith He is the father of Modern Economics He wrote the Wealth of Nations in 1776 In it he said that governments need to stay out of the economy as much as possible. laissez-faire

21. The Invisible Hand People and business operate in their own self-interest. Competition acts like an invisible hand which will allocate resources to ONLY their most productive uses. Example- if Milewski automotive made cars that exploded after 3,000 miles nobody would buy these defective autos. The company would go out of business freeing up the: -labor used to make the cars -land used in the cars (steel, glass, etc…) -financial capital invested in the company Thus, making these factors of production available to other productive and efficient automakers.

22. Division of Labor Division of Labor – work is arranged so individuals do fewer tasks than before. Specialization – factors of production perform tasks more efficiently than others. Human Capital – the sum of the skills, abilities, health, and motivation of the people.

23. TINSTAAFL There is no such thing as a free lunch Other terminology: Inverse relationship – as one number goes up, the other number goes down Direct relationship – as one number goes up, so does the other number.

24. Economics 3/17/11 http://mrmilewski.com OBJECTIVE: Examine the concepts related to Fundamental Economic Concepts. I. Chapter#1 Guided Readings Complete the following activities due today! -Chapter#1 section#1 Guided Reading -Chapter#1 section#2 Guided Reading -Chapter#1 section#3 Guided Reading -Chapter#1 Enrichment II. Chapter#1 Review -Work on Chapter#1 Homework &/or Review for Chapter#1 Test

25. Economics 3/18/11 http://mrmilewski.com OBJECTIVE: Examine gold mines. I. Administrative Stuff -Attendance II. Modern Marvels: Gold Mines -answer questions about film III. Review for Chapter#1 Test -independent study time NOTICE: Book Cover & Syllabus Due Monday! NOTICE: Chapter#1 Test Tuesday