1. Chamberlain

2. What is an Economy? Who’s part of the economy? What do you need for there to be an economy? Are you part of the US Economy?

3. Before we answer that… I want you to think of two things that you really want to buy….it could be something you need or something that you just want. Actual good or a Service I want the two things to be relatively close in price. Search the net for these objects and list the price and object on a piece of scrap paper.

4. Now what is an economy? What is your object/service you want/need? Where can you get it? Who makes the product if it is someone different from where you are buying? Is your item a Luxury Necessity What is a consumer? Are you a consumer

5. Economy System for producing and distributing goods and services to satisfy a consumer’s needs and wants Takes place at the Market Place where buyers and sellers come together Needs vs. Luxuries How are the products and services we need and want produced?

6. Factors of Production: resources for producing goods and services Entrepreneur – the person or company that developed the idea Land – resources used to make your product or provide your service Labor – Effort to create your product Capital – Financial – Money to create product or service Capital good – goods used to create products and services

7. Hula Hoop

8. Hula Hoop Ancient toy No one person or company can claim “inventing” the hoop Wham-O Company from LA made first plastic Hula Hoop in 1948 Sold 100 million in first year

9. How does your product fit in the Factors of Production? Land: Take your two products and make a list of materials you would need to make the product. Labor: What kind of labor would go into making your product/service? Capital Goods – Oven to make pizzas Financial Capital – Money to market and create your product or service?

10. Create your own product or service. On a piece of paper, come up with a product or service (school appropriate) you would want to invent or sell Give your product a name and then go through the factors of production to decide how your product or service would be created Entrepreneur, Land, Labor, and Capital

11. Buyers and Sellers Sellers Goal is to maximize profits Total cost (land labor and capital) – Total revenue = profit How – Find your target market Buyers/Consumers Sellers are often buyers… Choice Both buyers and sellers deal with scarcity???

12. Scarcity Our needs and wants are unlimited But Money Resources Time Good jobs Are All Limited!!!! Even the wealthiest people Even the wealthiest countries Deal with Scarcity

13. Result of Scarcity Choices Luxuries vs Necessities Subway or McDonald’s Opportunity Cost The goods and services you give up when you make a choice Snow blower (me) vs. Treadmill (my wife) We bought the treadmill The snow blower was the opportunity cost Part-time job or play baseball – what you give up is the opportunity cost

14. How has technology changed the economy? Newspaper Radio TV Internet What’s next? Faster Cheaper Easier Less human involvement Good or bad?

15. Big C’s Pizza Entrepreneur - ME Land – Natural Resources – Wheat, Vegetables, and Milk Labor – Myself and two other workers – Prep, Bake, Deliver and Clean-up Capital Financial Capital - $50,000.00 in loans to start business Capital Goods Pizza Oven, Trays, Boxes, Tables, Chairs, Pizza cutters, etc.

16. Types of Economies Traditional Command Market Mixed

17. Traditional Family, group or tribe controls what is produced and owns the factors of production in common Money is not an important aspect of this economy People work because it is the only way goods will be produced

18. Command Economy Government run Government controls what is produced Dictatorship Communism Created for different reasons by societies Control Equality

19. Market Economy Factors of production – land, labor and capital are owned by individuals Capitalism Free Enterprise Competition is a key element to a market economy

20. US – Mixed Economy Private owned businesses Government run/control Walmart Topps Napolis Choice Education Defense Post Office Some forms of Public Transportation PBS Public Works Waste Disposal

21. US Mixed Economy Regulations Health Environment Wages Overtime pay Safety Civil Rights Other goods or services that the government should provide?