1. Economics 101 What is an economy???
economy - Activities related to the production and distribution of goods and services in a particular geographic region .

2. + Economic Systems An economic system is:
-the way government and businesses work together to provide goods and services to consumers +

3. 3 Economic Questions 1. What goods & services should be produced?
2. How should these good and services be produced?
For whom should these goods and services be produced?

4. Pure Command Economy Government controls decision making
Government owns businesses
Government decides answers to 3 economic questions
Examples: North Korea, Cuba

5. Market Economy Consumers decide what will be produced
Marketplace decides answers to 3 economic questions
Based on principles of supply/demand
Example: USA

6. + Mixed Economy Includes aspects of all economies
Government and private individuals control marketplace
Example: Canada +

7. The Business Cycle

8. Stages of the Business Cycle
Expansion: Time when the economy of a country is thriving. Businesses are expanding and hiring more employees, and selling more products/services.
Peak: The point at which sales begin to decline.
Recession: A time when the level of economic activity begins to decline.
Trough: Sales begin to increase due to low prices. Some investors buy share in a company guessing the value will begin to increase.

9. Recession vs. Depression
Recession: A significant decline in activity across the economy typically lasting for a period of 6 months or more
Depression: Sustained, long-term downturn in an economy

10. Activity http://money.howstuffworks.com/recession.htm
Read through tutorial and take quiz at the end to test your knowledge!