GPS 4: Economic Systems & the 3 Questions underline the vocab word

1. GPS 4: Economic Systems & the 3 Questions underline the vocab word • SSEF4: Compare and contrast different economic systems and explain how they answer the 3 basic questions of what to produce, how to produce, and for whom to produce. • Compare command, market & mixed economic systems with regard to private ownership, profit motive, consumer sovereignty, competition, & government regulation. • Evaluate how well each type of system answers the 3 questions & meets the broad social and economic goals of freedom, security, equity, growth, efficiency, and stability. Virtual Econ Videos: Economic Institutions, Economic Systems, Property Rights

2. GPS 4 Essential Questions • What is an economic system? • What are the 3 basic questions economic systems answer? • What is a command, market & mixed economic system? How are they alike and how are the different? • What are private ownership, profit motive, consumer sovereignty, competition, & government regulation? • How well each type of system answer the 3 basic questions? • What are the broad social and economic goals of economic systems? • What is freedom, security, equity, growth, efficiency, and stability?

3. SSEF4: Compare and contrast different economic systems and explain how they answer the 3 basic questions. What are the 3 questions? Produce __________? Produce ________________? Produce ______ ___________?

4. SSEF4: Compare and contrast different economic systems and explain how they answer the 3 basic questions of what to produce, how to produce, and for whom to produce. Produce What? Produce How? Produce for whom?

5. 4a. Compare command, market & mixed economic systems with regard to private ownership, profit motive, consumer sovereignty, competition, & government regulation. • Define: private ownership, profit motive, consumer sovereignty, competition, & government regulation • Define Command, market, & mixed economic system • Give an example of the system • Fill in the graphic organizer

6. 4a. Compare & Contrast Economic Systems

8. Economic Goals Economic efficiency Making the most of resources Economic freedom Freedom from government intervention in the production and distribution of goods and services Economic security and predictability Assurance that goods and services will be available, payments will be made on time, and a safety net will protect individuals in times of economic disaster Economic equity Economic growth and innovation Other goals Fair distribution of wealth Innovation leads to economic growth, and economic growth leads to a higher standard of living. Societies pursue additional goals, such as environmental protection. 4b. Evaluate how well each type of system answers the 3 questions & meets the broad social and economic goals of freedom, security, equity, growth, efficiency, and stability.

9. 4b. How well does the economic system achieve the goal?

10. 4b. How well does the economic system achieve the goal?

11. United States Economy vs. China’s Economy: ABC’s People’s Republic of Capitalism: Joined at the Hip Video • What type of economy does the USA have? • What type of economy does China have? • What political ideology failed in China? • What is the political ideology of the USA? • Has that ideology failed? • How many children are couples allowed to have in China? • What language do Chinese children learn from birth? • What is China’s main contribution (resource-wise) to the global economy? • How much to demolition workers make per day? Male and female? • What is the least amount of money a worker legally must be paid in the USA? • What happened at Briggs and Stratton? • What did they manufacture? • Who was hurt by what happened at Briggs and Stratton? • Why can’t older people get jobs as easily as younger people? • In what countries are Ethan Allen furniture made? • On Apple’s products, it says “designed in _____________________, assembled in ________________________.” • Apple’s profit on its products is $____________. The Taiwanese assembly plant’s profit on Apple’s products is $__________. • Who is the world’s largest retailer that also utilizes China’s labor force? • Why is everything so cheap at the world’s largest retailer? (from above) • Why did the foreman of the tobacco and cotton plant import workers from Mexico? • What does that say about workers the USA? • Why did the Chinese doctor move back to China to conduct his AIDS research? • What kinds of products are the Chinese “middle class” buying? • Is the USA and China interdependent on one another economically? How? • (HOTS)With the onslaught of cheap Chinese labor, what can Americans do ensure job stability? • (HOTS) If you owned a business, would you outsource to China? Why or Why not?

12. Homework  • Practice 1.4 p. 34 Investment (4 questions) • Finish what was not completed in class today • Read over your notes!! • Don’t ever quit!!

13. Roles of the Government in a Market Economy Underline your vocab words! • SSEF5: Describe the role of the government in market economy. • Explain why government provides public goods and services, redistributes income, protects property rights, and resolves market failures. • Give examples of government regulation and deregulation and their effects on consumers and producers. Virtual Econ Videos: Roles of Government & Market Failures

14. GPS 5 Essential Questions • What is the role of the government in a market economy? • Why does the government provide public goods and services? • Why do they redistribute income? protects property rights? and resolve market failures? • What are some examples of government regulation and deregulation? • What are the effects of regulation and deregulation on consumers and producers.

15. 5a. What DOES the Government Do??? • What are some examples of the activities the local, state, and national governments carry out in the USA? • Maintaining Legal and Social Framework • Providing Public Goods and Services • Maintaining Competition • Redistributing Income • Correcting for Externalities • Stabilizing the Economy

16. What DOES the Government Do??? Maintaining Legal and Social Framework Provides Public Goods and Services Maintaining Competition Stabilizing the Economy Redistributing Income Correcting for Externalities

17. What DOES the Government Do??? Maintaining Legal and Social Framework Create laws, provide courts, gathers information & provides services to aid economy, establish monetary system, enforces property rights Provides Public Goods and Services Provides goods & services that markets are unwilling to provide (market failures) ex: National Defense, public education Maintaining Competition Creates & enforces anti-trust laws, regulates natural monopolies (public utilities & water services) Stabilizing the Economy Uses gov’t budget to promote economic growth, stabilize inflation, & reduce unemployment Redistributing Income Gov’t collects revenue via taxes & redistributes $$$ to unemployed, elderly & disabled Americans. (Social Security, Medicaid, Medicare) Correcting for Externalities Examples: taxes to help reduce pollution, subsidies to encourage public education

18. 5a. Economic Functions of Government • With a partner, using these headlines from the newspaper, classify the headlines under the appropriate economic function of government. Some headlines may represent more than one function. • Federal Government Approves Crime Bill; Cities to Hire Additional Police • Minnesota to Sue Tobacco Firms to Recover Health Care Costs • Consumer Product Safety Commission Recall of Skirts Made in India • US Investigation Seeks to Find if Aluminum Producers Conspired to Cut Output, Broke Anti-Trust Laws • Insurer Files Suit Charging Bank Made False Claims • Higher Interest Rates Likely Despite Inflation Data • U.S. Government to Increase Aid to Education Next Year • Northeast's Petition for Tighter Curbs on Auto Emissions Approved by Environmental Protection Agency • Group of Economists Urges Federal Reserve System Not to Act Against Inflation Now • Hughes Aircraft to Lay Off 4,400 and Close Big Defense Plant • Social Security Payments to Increase by 4% Next Year: Cost of Living Allowance Up • Congress Approves Higher Income Tax Rate for Top Wage Earners

19. Economic Functions of Government

20. Economic Functions of Government

21. WHAT ROLE SHOULD THE GOVERNMENT PLAY IN THE ECONOMY? Writing assignment

22. Homework: What DOES the Government Do??? Draw Your examples. Maintaining Legal and Social Framework Provides Public Goods and Services Maintaining Competition Stabilizing the Economy Redistributing Income Correcting for Externalities

23. 5b. What is Regulation? What is Deregulation?Ipad Inquiry What is regulation? What is deregulation? Using the pictures & an Ipad : What does FDA stand for? What do they regulate? What is the USDA? What do they regulate? What is the CDC? What do they do?

24. 5b. What is Regulation? What is Deregulation? • http://www.usa.gov/directory/federal/index.shtml • Using this website, count how many agencies are under the employment of the United States taxpayer. • Pick one regulatory agency. Explain what they regulate. • What are some effects of regulation on the consumer & producer? • What are some effects of deregulation on the consumer & producer?

25. 5b. Regulate or not to Regulate; That is the Question! Effects of Regulation • Effects of Deregulation

26. 5b. Regulate or not to Regulate; That is the Question! • Effects of Regulation • Prices go up~ • demand goes down  • 2. Better product quality  • 3. Competitors decline  • due to decreased profit • 4. Increased regulations  • http://www.cpsc.gov/ • http://money.uk.msn.com/ • Effects of Deregulation • Price goes down, product • quality can go down too  • 2. Competition increases • because more businesses • enter the market  • 3. Less restrictions  • 4. Consumers may suffer 

27. Homework  • Chapter Review p. 34 10 questions • Finish what was not completed in class today. • Read over your notes!! • Don’t ever quit!!

28. GPS 6: Productivity, Economic Growth, Future Standards of Living Underline your vocab words • SSEF6: Explain how productivity, economic growth, and future standards of living are influenced by investment in factories, machinery, new technology, and the health, education and training of people. • Define productivity as the relationship of inputs to outputs. • Give illustrations of investment in equipment and technology and explain their relationship to economic growth. • Give examples of how investment in education can lead to a higher standard of living. Videos: Productivity, Property Rights, technology

29. GPS 6 Essential Questions • How is productivity, economic growth, and future standards of living influenced by the investment made in factories, machinery, new technology, and the health, education and training of people? • What is productivity? • What are some examples of investment in equipment and technology? • How are they related to economic growth? • How can investment in education lead to a higher standard of living?

30. 6a. What is Productivity Anyway? • Doing m_____with L_______ • Small or L_______input, B________ or a lot of output • Test: How much product can be p__________? • Test: How much p________ is being made? • R – E = P (r__________minuse__________equal p_______) Henry Ford & the assembly line Video: http://www.history.com/videos/history-of-the-holidays-the-story-of-labor-day#history-of-the-holidays-the-story-of-labor-day

31. 6a. What is Productivity Anyway? • Doing morewith less • Small or little input, BIG or a lot of output • Test: How much product can be produced? • Test: How much profit is being made? • R – E = P (revenue minus expense equal profit) Henry Ford & the assembly line Video: http://www.history.com/videos/history-of-the-holidays-the-story-of-labor-day#history-of-the-holidays-the-story-of-labor-day

32. 6a. How is productivity increased? • With your Ipad, do some research. What is productivity? How can productivity be increased? Use these websites. Write in the space below what you find. • http://www.investopedia.com/terms/p/productivity.asp • http://www.window.state.tx.us/specialrpt/highered/productivity.html • http://forumblog.org/2013/04/five-ways-technology-can-help-the-economy/ • http://www.cdc.gov/workplacehealthpromotion/businesscase/benefits/productivity.html Be prepared to DISCUSS your findings & give examples of how a company would invest in Physical Capital and Human Capital.

33. SSEF6: With your Ipad, find an example of an investment in a factory, new machinery, and new technology has influenced productivity and economic growth in the US or ANY country. Write in the space below how this has helped the US economy grow. http://blog.al.com/businessnews/2012/11/kia_to_invest_16_billion_in_ge.html http://www.itbusinessedge.com/slideshows/show.aspx?c=86885&slide=12 http://www.extremetech.com/ http://seattletimes.com/html/businesstechnology/2022643660_briercesproductsxml.html

34. 6a. How is productivity increased? Watch Video: Human Capital • What are the 2 types of investments? • Investments are then used….. • What is Physical Capital (Goods)? • What is Human capital? Illustrate Your Thoughts! Give examples of how a company would invest in Physical Capital and Human Capital.

35. 6a. How is productivity increased? Watch Video: Human Capital • What are the 2 types of investments? Real or financial • Investments are then used….. for purchase of capital goods or furthering human capital through education • What is Physical Capital (Goods)? products used to make other final goods or services. Give Examples: • What is Human capital? investment in people, employees, workers. Give Examples: Illustrate Your Thoughts! Give examples of how a company would invest in Physical Capital and Human Capital.

36. Homework  • Finish Vocabulary. • Complete Crossword Puzzle. • Finish what was not completed in class today. • Read over your notes!! • Don’t ever quit!!

37. 6b. How is investment in equipment and technology related to economic growth? Ipad Inquiry Answer the questions below: • Is there usually a better way to do something? • If a country or a business fails to innovate and evolve, predict what might happen? (see Blockbuster) • What does the government do to encourage investment and innovation? Ipads: Do some research. Find an example of new innovation that has led to economic growth! Find an example of a company that has been slow to accept innovation. Where are they now?

38. 6b. Ipad inquiry: Illustrate investment in equipment & technology & explain their relationship to economic growth. • How is investment in equipment related to economic growth? • How is investment in technology related to economic growth? • In class: with a partner: Find on the internet articles, videos, or pictures that depict investment in these 2 areas. Think about how you might improve a process, a mechanical device, etc. at GHS. Describe what needs to be improved and write a paragraph below explaining how you would do it. Be creative!

39. 6c. Give examples of how investment in education can lead to a higher standard of living. http://www.bls.gov/emp/ep_chart_001.htm SOL: level of wealth, comfort, material goods and necessities available to a certain socioeconomic class in a certain geographic area. Look at the bar graph. What is the correlation between education and unemployment? What is the relationship between education and weekly earnings? In 2012, which group had the highest percentage of unemployment? What do you think the standard of living is for this group? On the graph, rank each degree’s standard of living from 1 to 8 with 1 being the highest and 8 the lowest. 5. In the group answered in #3, in your opinion, what types of skills and knowledge are characteristic of that group? 6. What group do you want to be a part of in your future?

40. 6c. Standards of Living Around the World http://chartsbin.com/view/mu4

41. Education = Standard of Living • The level of wealth, comfort, material goods and necessities available to a certain socioeconomic class in a certain geographic area. The standard of living includes factors such as income, quality and availability of employment, class disparity, poverty rate, quality and affordability of housing, hours of work required to purchase necessities, gross domestic product, inflation rate, number of vacation days per year, affordable (or free) access to quality healthcare, quality and availability of education, life expectancy, incidence of disease, cost of goods and services, infrastructure, national economic growth, economic and political stability, political and religious freedom, environmental quality, climate and safety. The standard of living is closely related to quality of life. • What is Standard of living anyway? • How is it measured? What is included in the measure? Look up 5 countries on different continents that you would like to visit. Write down the country and their standard of living. Look for the GDP per Capita or Human Development Index. http://www.mapsofworld.com/world-top-ten/world-top-ten-quality-of-life-map.html

42. SSEF6: Explain how productivity, economic growth, and future standards of living are influenced by investment in factories, machinery, new technology, and the health, education and training of people. Productivity Investment in business (factories, machinery) New Technology Health Education Skills Training Standard of Living Economic Growth

43. SSEF6: Explain how productivity, economic growth, and future standards of living are influenced by investment in factories, machinery, new technology, and the health, education and training of people. Productivity Investment in Health, Education, Skills Training Healthy employees Are absent less, have better attitudes, And can produce more Educated/skilled Employees Are problem solvers, Speak articulately, And have more confidence Investment in Business, (factories, machinery) New Technology New technology can Create more products In less time Which lowers production Costs!! Standard of Living Economic Growth

44. Homework  • Complete Vocabulary Take Home Quiz. • Finish what was not completed in class today. • Read over your notes!! • Don’t ever quit!!

45. Specialization and Voluntary Exchange Specialization and Division of Labor Activity Make Me a Sandwich! Instructions • You will be put into groups and given resources to make sandwiches. This is a timed activity. You will have: • 10 minutes to make decisions, (if you make decisions quickly you may begin) • 10 minutes to make sandwiches, • & 5 minutes to clean your area. • You will be graded on how efficient you are with all your resources, how productive you are, adherence to standards, how wisely you utilize your time and if you stay on schedule. • In your group decide/elect these roles: • Supervisor (responsible for making sure the work gets done in the time allotted) • Product Quality Inspector (responsible for making sure the sandwiches meet standards) • All workers must wear gloves • Bread must have peanut butter on one side, jelly on the other. • Peanut butter side is on top. Jelly is on the bottom. • 5 sandwiches must have the crust removed. • Bread must be squared. • All sandwiches must be cut into 4 triangles. • Sandwiches must be arranged on 2 final plates for consumption • Area must be clean, free of debris (subject to Manager approval) • Workers (divide up the work that will lead to the most efficiency) • Good Luck!

46. Review for the Unit 1 test • Unit 1 Jeopardy • Read your notes • Review with friends • Talk out loud (yes to yourself) • Make review cards • Sing, talk, sneeze, burp Economics 

47. REVIEW FOR UNIT 1 TEST!!! • Congratulations – you made it through unit one! • Now you have to ace the test… •  YOU CAN DO IT!!