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Economics Mr. Biddle. Scarcity, Economic Systems, and Free Enterprise. Economics. Economics : the attempt to satisfy seemingly unlimited wants and needs using limited resources. Scarcity. Imbalance between unlimited wants and limited resources available for satisfying those wants.

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  • Economics: the attempt to satisfy seemingly unlimited wants and needs using limited resources
  • Imbalance between unlimited wants and limited resources available for satisfying those wants.
    • Not having enough resources to produce all the things people would like to have.
economic systems
Economic Systems
  • Economic Systems are created to deal with scarcity.
  • Traditional- A type of economic system where all the economic activity comes from rituals, habits, or customs. EX- The Inuit's
    • Normally found in a community that relies of agriculture or hunter/gathering, (based on trade)
economic systems1
Economic Systems
  • Command- A type of economic system where all the decisions are made by a central authority or government
  • EX- Cuba, North Korea, and China
economic systems2
Economic Systems
  • Market- An Economic system where individuals and firms act in their own best interests.
    • People make all the decisions with no government interference
economic systems3
Economic Systems
  • Mixed- An Economic system where people are free to make decisions with some government influence
  • Ex- The United States of America
reading groups 2 nd period
Reading Groups2nd Period

Group 4

Alex Blackaby

Bobbie Carroll

Steven Rice

Brett Bowen

Kody Workman

Group 1

Carlee Peters

Sidney Dietrich

Kaylin Wells

Shannon Carey

James Holder

Group 3

Wade Browning

Jacob Johnson

Alex Clymer

Nancy Shoemaker

Emilee Feltner

Group 5

Kelsey Brewer

Jackson Jenkins

Rachael Piechnik

Ashley Williams

Taylor Gabbard

Zach Williams

Group 2

Jacob Nordheim

Clay Thompson

Morgan Sydnor

Dylan Roseberry

Chris Bruin

reading groups 5 th period
Reading Groups5th Period

Group 4

Holly Jenkins

Dakota Burton

Cory Dozier

William Neace

Trevor Hown

Group 1

Taelor McMillin

Blake Pollard

Erin Fitzpatrick

Garret Marshall

Caleb Schaller

Group 3

Courtney Brierly

Melanie Hill

Sean Neuspickel

Hailey York

Kenneth Ross

Group 2

Zach Risen

Ashley Deering

Brandon Gibbs

Hunter Schalk

Cheyenne Meadows

Group 5

Garret Partin

Edward Bartram

Melanie Teegarden

Dawn Shaefer

Emily Prince

Anthony Clower

reading groups 7 th period
Reading Groups7th Period

Group 1

Gowan Brock

Kenton Wells

Jordan Bishop

Chandler Aulick

Hannah Sweetland

Group 4

Anthony Coffman

Kevin Trent

Darrell Pugh

Dakota Spencer

Kenton Shoemaker

Group 3

Summer Childers

Angel Harrison

Hannah Lee

Ansley Baker

Group 2

Sienna Price

Jesse Witt

Scribe Zagazeta

Tanner Daugherty

Dakota Barnes

Group 5

Doug Eglian

Sammy Ross

Alexis Caudill

Brent Goins

reading groups
Reading Groups
  • After you have read you article and answered your questions create a visual representation of the Economic system you are reading about
  • Include
    • Raw Materials
    • Production
    • Distribution
    • Consumption
market system
Market System
  • Economic system in which supply, demand, and the price system help people make decisions and allocate resources
    • Same as a Free Enterprise Economy
    • Normally based on a system of Capitalism, where people own the factors of production
free enterprise economy
Free Enterprise Economy
  • In the US we live in a Free Enterprise Economy
  • In this Competition is allowed to flourish with a minimum of government influence.
5 characteristics of a free enterprise economy
5 Characteristics of a Free Enterprise Economy
  • Economic Freedom
  • Voluntary Exchange
  • Private Property Rights
  • The Profit Motive
  • Competition
economic freedom
Economic Freedom
  • Individuals are free to choose all economic decisions, such as, where and when they want to work:
    • Days/nights
    • Indoors/outdoors
    • In an office/at home
    • Have your own business/work for someone else
    • Leave job/Take a new job
    • What do I want to purchase?
economic freedom1
Economic Freedom
  • Businesses also are free to make decisions:
    • Fire/hire who they want
    • Produce what goods they want
    • Decide how much to produce
    • Sell where they want to sell
    • Risk success/failure
    • Charge what they want
  • With Economic Freedom everything is open season!
voluntary exchange
Voluntary Exchange
  • The act of buyers and sellers freely and willingly engaging in market transactions
voluntary exchange1
Voluntary Exchange
  • Transactions are made in such a way that both the buyer and seller are better off after the exchange
    • The buyer felt it was worth more than the $
    • Seller felt the $ was worth more than the product
private property rights
Private Property Rights
  • The Privilege that entitles people to own and control their possessions as they wish.
private property rights1
Private Property Rights
  • Private Property includes tangible items such as houses and cars, and intangible items such as skills and talents
  • People have the rights to use or abuse their property as long as they don’t interfere with the rights of others
private property rights2
Private Property Rights
  • Private Property gives individuals the incentive to work, save, and invest, because if you are successful you know you can keep any reward you earn
  • People will own things, because they can do with it what they want
profit motive
Profit Motive
  • The driving force that encourages people and organizations to improve their material well-being.
profit motive1
Profit Motive
  • Profit- the extent to which persons or organizations are better off at the end of a period than they were at the beginning
  • Entrepreneurs- those who risk entering a business in hopes of making a profit
    • F.E.E. allows people to risk their $ in a business venture
  • The struggle among sellers to attract consumers while lowering costs and creating new products
  • Because capitalism is based on freedom and voluntary exchange, buyers compete to find the best products at the lowest price
the role of the entrepreneur
The Role of the Entrepreneur
  • The Entrepreneur is one of the most important people in the economy
  • The Entrepreneur:
    • Organizes and manages land, capital, and labor
    • Starts up new businesses
    • Creates new products
  • All of this in order to seek the reward called Profit!
the role of the entrepreneur1
The Role of the Entrepreneur
  • Many Entrepreneurs fail
  • Others stay in business with varying degrees of success
  • Only a few manage to be extremely wealthy
    • Bill Gates
    • Paul Allen
    • Nolan Bushnell
the role of the entrepreneur2
The Role of the Entrepreneur
  • Entrepreneurs are the catalyst of a F.E.E.
    • Starts the action
  • When the Entrepreneur is successful everyone benefits.
    • The Entrepreneur gets profit and a growing business
    • The workers are rewarded with a better job (more $)
    • Consumers are rewarded with new and better products
    • The Government is rewarded with a higher level of economic activity and larger Tax receipts, used to build roads, schools, libraries, etc.
    • Everyone Benefits!
the role of the entrepreneur3
The Role of the Entrepreneur
  • When an entrepreneur is successful other industry people rush in to “grab a share” of the profit.
  • To stay competitive the original entrepreneur has to cut prices or improve the quality of his original product (benefits the consumer)
the role of the entrepreneur4
The Role of the Entrepreneur
  • In the end , the entrepreneurs search for profit leads to a chain of events that involves new products, greater competition, more production, higher quality, and lower prices for consumers
the role of the consumer
The Role of the Consumer
  • Consumers have the power in the economy, because they determine which products will be produced, by what they purchase.
  • If consumers like a product they buy it, if they don’t they wont!
  • Some products make it and some don’t!
the role of the consumer1
The Role of the Consumer
  • Consumer Sovereignty- The consumer is sovereign (has the power)
  • “The costumer is always right!”
the role of the government
The Role of the Government
  • Government has a role, because citizens want them to have a role.
    • Justified, b/c the benefits outweigh the costs
  • The Government is the:
    • Protector
    • Provider of goods and services
    • Consumer
    • Regulator
    • Promoter of National Goals
  • Enforces Laws
    • Misleading Ads, unsafe food and drugs, environmental hazards
  • It also protects individual freedoms
    • Can’t be fired for race, or gender
  • In short, the gov’t ensures an efficient and fair economy
provider and consumer
Provider and Consumer
  • The Government provides goods and services
    • Such as, Education, welfare, bus services, parks, and libraries, etc
  • The Government consumes the same as any other business, putting money back into the economy
  • The government is in charge of preserving competition in the market place
  • Regulates different things such as, insurance rates, building zones, Labor laws, and health regulations
  • Government sets rules for individuals protection
promoter of national goals
Promoter of National Goals
  • The government strives to achieve economic goals of freedom, efficiency, equity, security, full employment, price stability, and economic growth
    • Social Security
    • Child Labor Laws
    • Set Minimum Wage
mixed market economy
Mixed Market Economy
  • Modified Private Enterprise Economy
  • People carry on with their economic affairs freely, but are subject to some government intervention and regulation