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Understanding Basic Economics

Understanding Basic Economics. Warm – Up January 27, 2011 CRCT Prep. 1. Who takes a financial risk in starting a new business in a market economy? A. Consumers B. individual business people C. government planners D. combination of planters and investors. Activator: UNPACK THE STANDARD.

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Understanding Basic Economics

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  1. Understanding Basic Economics

  2. Warm – UpJanuary 27, 2011CRCT Prep 1. Who takes a financial risk in starting a new business in a market economy? • A. Consumers • B. individual business people • C. government planners • D. combination of planters and investors

  3. Activator:UNPACK THE STANDARD SS7E3 The student will describe factors that influence economic growth and examine their presence or absence in Nigeria and South Africa. • a. Explain the relationship between investment in human capital (education and training) and gross domestic product (GDP). PULL OUT THE NOUNS AND VERBS WITHIN YOUR GROUP! What should you be able to do??????

  4. EQ: What is the relationship between investment in human capital (education and training) and gross domestic product (GDP)? What is the relationship between investment in capital (factories, machinery, and technology) and gross domestic product (GDP)?

  5. Today we learned the relationship between human capital, investments in capital, and GDP because we need to understand the impact it has on economic growth in Africa.

  6. SS7E3 The student will describe factors that influence economic growth and examine their presence or absence in Nigeria and South Africa. • a. Explain the relationship between investment in human capital (education and training) and gross domestic product (GDP). • b. Explain the relationship between investment in capital (factories, machinery, and technology) and gross domestic product (GDP).

  7. Every time you see this picture you have a new note card to make! NOTE ‘CARD’ TAKING! Front Vocab Word Definition: Picture Relationship Back

  8. EXAMPLE Definition A stop on trade between countries. EMBARGO Countries around the world placed an embargo on South Africa until they changed their discriminatory policies. Picture Vocabulary word Relationship

  9. HUMAN CAPITAL • Human Capital means the knowledge and skills that make it possible for workers to earn a living producing goods and services.

  10. Human Capital More skills and education workers have the better, they are able to work with less mistakes and sell more products = more Money in the pockets of the companies they work for. • (ex. USA invest in human capital by providing workers with an education in turn workers work in good paying jobs that sell more products = high GDP (gross domestic product for the USA)

  11. GDP • Gross Domestic Product (GDP) = taking the total value of all goods and services produced by a country in a single year and dividing that number by the total population.

  12. South Africa---invest heavily in human capital===Higher GDP (Gross Domestic Product) However due to the apartheid system that was put in place-the advantages favor the white than the non-white(which have the highest unemployment rate in the country) Nigeria---have a strong economy in oil and an educated population Howeverdue to government corruption, civil war and military rule have left Nigeria very poor. 70% of population live on only a dollar a day. RELATIONSHIP

  13. Checking for Understanding Place your card down on the desk and be prepared to hold up your answer! 1. SKILLS AND KNOWLEDGE WORKERS HAVE ARE APART OF A COUNTRY’S ____________. Human Capital

  14. UNPACK THE STANDARD SS7E3 The student will describe factors that influence economic growth and examine their presence or absence in Nigeria and South Africa. • b. Explain the relationship between investment in capital (factories, machinery, and technology) and gross domestic product (GDP). PULL OUT THE NOUNS AND VERBS WITHIN YOUR GROUP! What should you be able to do?????? (One page per group, put every ones name on the paper) (be prepared to answer)

  15. CAPITAL GOODS • Capital Goods are factories, machines, and technology that people use to make products to sell.

  16. GDP • Gross Domestic Product (GDP) = taking the total value of all goods and services produced by a country in a single year and dividing that number by the total population.

  17. RELATIONSHIP • Producing more goods for sell= High Economic Growth and high Profits (money) • Higher profits=higher GDP(Gross Domestic Product)

  18. Checking for Understanding Place your card down on the desk and be prepared to hold up your answer! 2. The factories and machines used to make goods are called ____________. Capital Goods

  19. Relationship (cont’d) (South Africa-heavily invest in equipment to get gold, diamonds and platinum) (South Africa-heavily invest in iron and steel production that make automobiles and trucks) (Nigeria has invested heavily in capital goods for its oil industry. New technology is required in order to compete in the global oil market. The concentration on capital goods for this segment of the economy, however, has left many Nigerians without proper food and housing.)

  20. Closing: Using the Vocabulary cards your group needs to come up with your own summary definitions for each term discussed in the lesson. (Use the same, group unpacking the standard paper, to be turned in)

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