Business Chapter1
-
Upload
camilla-grandgeorge -
Category
Education
-
view
384 -
download
1
description
Transcript of Business Chapter1
![Page 1: Business Chapter1](https://reader033.fdocuments.in/reader033/viewer/2022061219/54b86fcb4a795975308b46b0/html5/thumbnails/1.jpg)
Economic Decisions
Chapter 1
![Page 2: Business Chapter1](https://reader033.fdocuments.in/reader033/viewer/2022061219/54b86fcb4a795975308b46b0/html5/thumbnails/2.jpg)
Economics
• Economics- a science that studies the production, distribution, and consumption of goods and services.
![Page 3: Business Chapter1](https://reader033.fdocuments.in/reader033/viewer/2022061219/54b86fcb4a795975308b46b0/html5/thumbnails/3.jpg)
Needs
• Needs – things that are necessary for survival Food & Water Clothing Shelter
![Page 4: Business Chapter1](https://reader033.fdocuments.in/reader033/viewer/2022061219/54b86fcb4a795975308b46b0/html5/thumbnails/4.jpg)
Wants
• Wants – things that are not necessary for survival but which add comfort and pleasure to our lives
![Page 5: Business Chapter1](https://reader033.fdocuments.in/reader033/viewer/2022061219/54b86fcb4a795975308b46b0/html5/thumbnails/5.jpg)
Worksheets
• Hand out the worksheet Is it a want or a need?
![Page 6: Business Chapter1](https://reader033.fdocuments.in/reader033/viewer/2022061219/54b86fcb4a795975308b46b0/html5/thumbnails/6.jpg)
Unlimited Wants
• Unlimited Wants - Wants that never end• Iowa Falls Alden High School
If we had all the money we wanted to spend for our school, what things we would like to have? Every student gets a laptop computer, Bowling alley
for PE, Outback Steak House for lunch, etc. In your notes, make a list of at least 10 things
that we don’t have at school that you would like to have at school.
![Page 7: Business Chapter1](https://reader033.fdocuments.in/reader033/viewer/2022061219/54b86fcb4a795975308b46b0/html5/thumbnails/7.jpg)
WORKSHEET
• Hand out Needs and Wants Math Problems Go over it together as a class There will be a quiz over this on Friday
Every Friday there will be a QUIZ
![Page 8: Business Chapter1](https://reader033.fdocuments.in/reader033/viewer/2022061219/54b86fcb4a795975308b46b0/html5/thumbnails/8.jpg)
Needs & Wants
How do people satisfy their wants and needs?
Answer
• People satisfy their wants and needs by purchasing and consuming goods and services.
![Page 9: Business Chapter1](https://reader033.fdocuments.in/reader033/viewer/2022061219/54b86fcb4a795975308b46b0/html5/thumbnails/9.jpg)
Goods
• Goods – things you can see and touch Name some products
Desks Cars Etc.
![Page 10: Business Chapter1](https://reader033.fdocuments.in/reader033/viewer/2022061219/54b86fcb4a795975308b46b0/html5/thumbnails/10.jpg)
Name Goods
• In your notes, write down 10 different goods.
![Page 11: Business Chapter1](https://reader033.fdocuments.in/reader033/viewer/2022061219/54b86fcb4a795975308b46b0/html5/thumbnails/11.jpg)
Iowa Falls Business
• Write down the following in your notes
• Name 4 businesses in Iowa Falls or other local towns that makes a good Example - Frigidaire in Webster City
makes washers & dryers.
![Page 12: Business Chapter1](https://reader033.fdocuments.in/reader033/viewer/2022061219/54b86fcb4a795975308b46b0/html5/thumbnails/12.jpg)
Services
• Services - things that satisfy our wants through the efforts of other people or equipment
• Example of some occupations: Doctors Waiters Barber/Beautician Attorneys
![Page 13: Business Chapter1](https://reader033.fdocuments.in/reader033/viewer/2022061219/54b86fcb4a795975308b46b0/html5/thumbnails/13.jpg)
Services
• In your notes, write down 10 other jobs that provide a service.
![Page 14: Business Chapter1](https://reader033.fdocuments.in/reader033/viewer/2022061219/54b86fcb4a795975308b46b0/html5/thumbnails/14.jpg)
Iowa Falls Business
• Name 4 businesses in Iowa Falls that provides a service.
![Page 15: Business Chapter1](https://reader033.fdocuments.in/reader033/viewer/2022061219/54b86fcb4a795975308b46b0/html5/thumbnails/15.jpg)
Worksheet
• The first part Good or a Service
![Page 16: Business Chapter1](https://reader033.fdocuments.in/reader033/viewer/2022061219/54b86fcb4a795975308b46b0/html5/thumbnails/16.jpg)
Economic Resources
• Economic Resources / Factors of Production – the means through which goods and services are produced.
• What is needed to make something we use. All three of these resources are necessary.
#1 Natural Resources - land #2 Humans Resources - labor #3 Capital Resources - capital
![Page 17: Business Chapter1](https://reader033.fdocuments.in/reader033/viewer/2022061219/54b86fcb4a795975308b46b0/html5/thumbnails/17.jpg)
Economic Resource #1
• Natural Resources or Land– raw materials supplied by nature Example:
Farmland – Iowa $5,000 - $6,000 an acre Water - drinkable Clean air Gold Trees
In your notes, write down 5 more examples of what a natural resource is
![Page 18: Business Chapter1](https://reader033.fdocuments.in/reader033/viewer/2022061219/54b86fcb4a795975308b46b0/html5/thumbnails/18.jpg)
Countries
• Go to www.google.com using Fire fox Chose Maps
Chose one country from• Europe• Asia• South America• Africa
Write them on a piece of paper and give them to me
![Page 19: Business Chapter1](https://reader033.fdocuments.in/reader033/viewer/2022061219/54b86fcb4a795975308b46b0/html5/thumbnails/19.jpg)
Internet - Country Research
• Go to www.cia.gov Draw to find out which two countries to research
Research information on them• Agricultural products• Economics• Government• Demographics• Etc.
Fill out the worksheet
![Page 20: Business Chapter1](https://reader033.fdocuments.in/reader033/viewer/2022061219/54b86fcb4a795975308b46b0/html5/thumbnails/20.jpg)
Power Point of Countries
• Draw to find out which country you will research
• Explain the Power Point assignment
![Page 21: Business Chapter1](https://reader033.fdocuments.in/reader033/viewer/2022061219/54b86fcb4a795975308b46b0/html5/thumbnails/21.jpg)
Economic Resource # 2
• Human resources or Labor– people who work to produce goods and services. Unemployment rate is 9.7% - National Unemployment rate is 6.2% - Iowa Farmers Computer programmer Bank tellers Firemen
![Page 22: Business Chapter1](https://reader033.fdocuments.in/reader033/viewer/2022061219/54b86fcb4a795975308b46b0/html5/thumbnails/22.jpg)
What Determines Amount of Wages Jobs Pay?
1. The higher the level of education, the more money you will make.
2. Those with natural ability, can command a higher wage because not many people have this ability. (such as concert musicians and professional athletes)
![Page 23: Business Chapter1](https://reader033.fdocuments.in/reader033/viewer/2022061219/54b86fcb4a795975308b46b0/html5/thumbnails/23.jpg)
How much money?
3. Employers will often pay higher wages to entice workers to accept positions with unpleasant aspects, such as midnight shifts, dangerous work, etc.
4. Wages will often differ based on the cost of living in different cities; for example, the cost of living in California is higher than the cost of living in Indiana, so wages in general in California will be higher than those in Indiana.
![Page 24: Business Chapter1](https://reader033.fdocuments.in/reader033/viewer/2022061219/54b86fcb4a795975308b46b0/html5/thumbnails/24.jpg)
Economic Resource #3
• Capital Resources or Capital – tools, equipment and buildings that are used to produce goods and services Examples: factories computers delivery trucks MONEY
• In your notes list 5 more examples of what a capital resource is.
![Page 25: Business Chapter1](https://reader033.fdocuments.in/reader033/viewer/2022061219/54b86fcb4a795975308b46b0/html5/thumbnails/25.jpg)
Money is Considered a Capital Resource
• Example – Sue is trying to raise $40,000 to expand her store. Sue needs capital. She can get money several ways.
Loan from a bank - capital Her own money - capital Ask investors for money - capital
![Page 26: Business Chapter1](https://reader033.fdocuments.in/reader033/viewer/2022061219/54b86fcb4a795975308b46b0/html5/thumbnails/26.jpg)
Worksheet
• 2nd part of the Goods and Services worksheet
![Page 27: Business Chapter1](https://reader033.fdocuments.in/reader033/viewer/2022061219/54b86fcb4a795975308b46b0/html5/thumbnails/27.jpg)
Scarcity
• Scarcity is the conflict between unlimited wants and limited resources. This is the basic economic problem The government does not have enough
money to fix all the bridges that need fixing.
Think of our Government• List 5 examples of scarcity that our government
faces everyday
![Page 28: Business Chapter1](https://reader033.fdocuments.in/reader033/viewer/2022061219/54b86fcb4a795975308b46b0/html5/thumbnails/28.jpg)
Scarcity of Basic Needs
• 15% of the people in this world do NOT get their basic needs met. 3rd world countries are under developed
countries• Kenya, Sudan, Ethiopia
Of the world’s 6 billion people, more than 1.2 billion live on less than $1 a day.
![Page 29: Business Chapter1](https://reader033.fdocuments.in/reader033/viewer/2022061219/54b86fcb4a795975308b46b0/html5/thumbnails/29.jpg)
continued
Now, the world has 6.7 billion people1. China - 1.3 billion2. India - 1.1 billion3. U.S. - 307 million
• In 2040, it is predicted there will be 9 billion people in the world
![Page 30: Business Chapter1](https://reader033.fdocuments.in/reader033/viewer/2022061219/54b86fcb4a795975308b46b0/html5/thumbnails/30.jpg)
Trade-Off
• Trade off - Giving up something to have something else you want
• If your parents gave you $100 for your birthday, and you spent it all on a new pair of shoes, what was your trade off? Example - no money to go to the movies
this month List 3 in your notes
![Page 31: Business Chapter1](https://reader033.fdocuments.in/reader033/viewer/2022061219/54b86fcb4a795975308b46b0/html5/thumbnails/31.jpg)
Opportunity Cost
• Opportunity Cost - The value of any alternative that you give up when you buy something else or make another choice Example: You want the 2010 Madden football
video game and concert tickets to Dave Mathews Band. You chose the video game. Part of the “cost” of the video game is now you don’t have enough money to go to the concert. That is your opportunity cost.
![Page 32: Business Chapter1](https://reader033.fdocuments.in/reader033/viewer/2022061219/54b86fcb4a795975308b46b0/html5/thumbnails/32.jpg)
Economic Systems
• Economic Systems - a nation’s plan for answering the three economic questions.
1. What goods and services will be produced?
2. How will the goods and services be produced?
3. What needs and wants will be satisfied with the goods and services produced?
![Page 33: Business Chapter1](https://reader033.fdocuments.in/reader033/viewer/2022061219/54b86fcb4a795975308b46b0/html5/thumbnails/33.jpg)
Command Economy
• Command Economy - the resources are owned and controlled by the government
• Example: China Saudi Arabia Vietnam
![Page 34: Business Chapter1](https://reader033.fdocuments.in/reader033/viewer/2022061219/54b86fcb4a795975308b46b0/html5/thumbnails/34.jpg)
Market Economy
• Market economy - the resources are owned and controlled by the people of the country.
• Example No country has a true market economy All countries have involvement of the
government
![Page 35: Business Chapter1](https://reader033.fdocuments.in/reader033/viewer/2022061219/54b86fcb4a795975308b46b0/html5/thumbnails/35.jpg)
Mixed Economy
• Mixed economy combines elements of the command and market economies.
• Examples United States Canada Japan Italy United Kingdom
![Page 36: Business Chapter1](https://reader033.fdocuments.in/reader033/viewer/2022061219/54b86fcb4a795975308b46b0/html5/thumbnails/36.jpg)
Traditional Economy
• Traditional Economy - goods and services are produced the way it has always been done.
• Examples Not any true traditional India is close
![Page 37: Business Chapter1](https://reader033.fdocuments.in/reader033/viewer/2022061219/54b86fcb4a795975308b46b0/html5/thumbnails/37.jpg)
United State’s Economy
1. Mixed Economy2. We have the largest GDP in the world.
1. (we produce the most goods & services)
3. Capitalism- private ownership of resources by people (not government)
4. Free Enterprise Private enterprise - we can start and own
a business if we want.
![Page 38: Business Chapter1](https://reader033.fdocuments.in/reader033/viewer/2022061219/54b86fcb4a795975308b46b0/html5/thumbnails/38.jpg)
Private Property
• The right of private property is you can own anything you want and decide what you want to do with it, as long as it does not violate the law.
![Page 39: Business Chapter1](https://reader033.fdocuments.in/reader033/viewer/2022061219/54b86fcb4a795975308b46b0/html5/thumbnails/39.jpg)
Profit
• Profit is the money left from sales after all of the costs of operating a business have been paid.
![Page 40: Business Chapter1](https://reader033.fdocuments.in/reader033/viewer/2022061219/54b86fcb4a795975308b46b0/html5/thumbnails/40.jpg)
Competition
• Competition if the rivalry among businesses to sell their goods and services.
![Page 41: Business Chapter1](https://reader033.fdocuments.in/reader033/viewer/2022061219/54b86fcb4a795975308b46b0/html5/thumbnails/41.jpg)
Consumer
• Consumer - A person who buys and uses goods and services.
![Page 42: Business Chapter1](https://reader033.fdocuments.in/reader033/viewer/2022061219/54b86fcb4a795975308b46b0/html5/thumbnails/42.jpg)
Producers
• Producers are individuals and organizations that determine what products and services will be available for sale.
![Page 43: Business Chapter1](https://reader033.fdocuments.in/reader033/viewer/2022061219/54b86fcb4a795975308b46b0/html5/thumbnails/43.jpg)
Demand
• Demand is the quantity of a good or service that consumers are willing and able to buy.
![Page 44: Business Chapter1](https://reader033.fdocuments.in/reader033/viewer/2022061219/54b86fcb4a795975308b46b0/html5/thumbnails/44.jpg)
Supply
• Supply refers to the quantity of a good or service that businesses are willing and able to provide.
![Page 45: Business Chapter1](https://reader033.fdocuments.in/reader033/viewer/2022061219/54b86fcb4a795975308b46b0/html5/thumbnails/45.jpg)
MARKET ECONOMY
• MARKET ECONOMY Consumers set demand Producers establish supply
![Page 46: Business Chapter1](https://reader033.fdocuments.in/reader033/viewer/2022061219/54b86fcb4a795975308b46b0/html5/thumbnails/46.jpg)
DEMAND AND SUPPLY
![Page 47: Business Chapter1](https://reader033.fdocuments.in/reader033/viewer/2022061219/54b86fcb4a795975308b46b0/html5/thumbnails/47.jpg)
Checkpoint >>
How does the price of a product affect demand and supply?
Answer
• As prices decrease, the number of consumers willing and able to purchase the product (demand) will increase.
• As prices increase, businesses will be willing to supply larger quantities of the product.
![Page 48: Business Chapter1](https://reader033.fdocuments.in/reader033/viewer/2022061219/54b86fcb4a795975308b46b0/html5/thumbnails/48.jpg)
MARKET PRICE
![Page 49: Business Chapter1](https://reader033.fdocuments.in/reader033/viewer/2022061219/54b86fcb4a795975308b46b0/html5/thumbnails/49.jpg)
Checkpoint >>
How is the market price for a product determined?
Answer
• Supply, demand, and competition determine the market price for a product or service.
• The market price is the point at which supply and demand are equal.
![Page 50: Business Chapter1](https://reader033.fdocuments.in/reader033/viewer/2022061219/54b86fcb4a795975308b46b0/html5/thumbnails/50.jpg)
Market Price
• Market price is the point where supply and demand are equal.
![Page 51: Business Chapter1](https://reader033.fdocuments.in/reader033/viewer/2022061219/54b86fcb4a795975308b46b0/html5/thumbnails/51.jpg)
Decision Making - 6 steps
Define the ProblemList your opportunitiesDefine your
AdvantagesDisadvantages
Make your decisionAct on your decisionReview your decision
![Page 52: Business Chapter1](https://reader033.fdocuments.in/reader033/viewer/2022061219/54b86fcb4a795975308b46b0/html5/thumbnails/52.jpg)
Decision Making Worksheet
• Define the problem What are you going to do after you
graduate high school?
![Page 53: Business Chapter1](https://reader033.fdocuments.in/reader033/viewer/2022061219/54b86fcb4a795975308b46b0/html5/thumbnails/53.jpg)
Example
• The problem - You were driving your car too fast and you got a ticket for speeding. Now your parents are considering not letting drive anymore.
![Page 54: Business Chapter1](https://reader033.fdocuments.in/reader033/viewer/2022061219/54b86fcb4a795975308b46b0/html5/thumbnails/54.jpg)
High Price of Gas
• Why is the price of gas high?1. Scarcity
The world consumes more oil than we produce
We have oil in Alaska and California but we are not allowed to drill because the land is protected by the Government for environmental purposes.
2. Hurricanes shut down refineries
![Page 55: Business Chapter1](https://reader033.fdocuments.in/reader033/viewer/2022061219/54b86fcb4a795975308b46b0/html5/thumbnails/55.jpg)
Volatile Gas Prices
• July 2008 $147 a barrel for oil Gallon of gas $4.14
• October 2008 $74 a barrel of oil Gallon gas $2.75
• Why? U.S. consumers have changed their
driving habits U.S. may be headed toward a recession
![Page 56: Business Chapter1](https://reader033.fdocuments.in/reader033/viewer/2022061219/54b86fcb4a795975308b46b0/html5/thumbnails/56.jpg)
Future
• Analysts say OPEC countries have been alarmed by falling oil prices and want a production cut to prop up prices - cut the supply of oil by 1- 2 million barrels a day.
QuickTime™ and aTIFF (Uncompressed) decompressor
are needed to see this picture.
![Page 57: Business Chapter1](https://reader033.fdocuments.in/reader033/viewer/2022061219/54b86fcb4a795975308b46b0/html5/thumbnails/57.jpg)
Price of Gas Around the World
• Assignment Sheet How much does a gallon cost in different
countries and in different states in the United States.
![Page 58: Business Chapter1](https://reader033.fdocuments.in/reader033/viewer/2022061219/54b86fcb4a795975308b46b0/html5/thumbnails/58.jpg)
Oil Production
Which countries produce the most oil?1. Saudi Arabia - 11 million2. Russia - 10 million3. United States - 8 million4. Iran - 4 million5. Mexico - 3 million6. China - 3 million7. Canada - 3 million
![Page 59: Business Chapter1](https://reader033.fdocuments.in/reader033/viewer/2022061219/54b86fcb4a795975308b46b0/html5/thumbnails/59.jpg)
Oil Consumption
Which country uses the most oil? (barrels a day)
1. United States - 21 million2. European Union - 15 million3. China - 7 million4. Japan - 5 million5. Russia - 3 million
![Page 60: Business Chapter1](https://reader033.fdocuments.in/reader033/viewer/2022061219/54b86fcb4a795975308b46b0/html5/thumbnails/60.jpg)
United States
• We produce 8 million barrels a day• We consume 21 million barrels a day
• We make 3% of the world’s oil• We use 25% of the world’s oil
![Page 61: Business Chapter1](https://reader033.fdocuments.in/reader033/viewer/2022061219/54b86fcb4a795975308b46b0/html5/thumbnails/61.jpg)
OPEC
• OPEC Organization of the Petroleum Exporting Countries
Saudi Arabia, Iraq, Iran, Venezuela, Kuwait, Algeria, Nigeria, Ecuador, Qatar, Libya, and Angola
They produce 35.6% of the world’s oil They control the supply of oil
They cut back the supply
![Page 62: Business Chapter1](https://reader033.fdocuments.in/reader033/viewer/2022061219/54b86fcb4a795975308b46b0/html5/thumbnails/62.jpg)
Chapter 2
• Measuring Economic Activity
![Page 63: Business Chapter1](https://reader033.fdocuments.in/reader033/viewer/2022061219/54b86fcb4a795975308b46b0/html5/thumbnails/63.jpg)
GDP
• GDP -Gross Domestic Product is the total dollar value of all final goods and services produced in a year.
![Page 64: Business Chapter1](https://reader033.fdocuments.in/reader033/viewer/2022061219/54b86fcb4a795975308b46b0/html5/thumbnails/64.jpg)
GDP spending
1. Consumer spending2. Business spending3. Government spending4. Exports - imports to other countries
![Page 65: Business Chapter1](https://reader033.fdocuments.in/reader033/viewer/2022061219/54b86fcb4a795975308b46b0/html5/thumbnails/65.jpg)
GDP
• Only final goods• If GDP increases, the country’s
economy is growing and is healthy
![Page 66: Business Chapter1](https://reader033.fdocuments.in/reader033/viewer/2022061219/54b86fcb4a795975308b46b0/html5/thumbnails/66.jpg)
GDP per capita (person)
• United States is $43,000• China is $7,600• Iraq is $4,000• Norway is $57,500• India is $3,700• Canada is $35,200• Mexico is $10,600• Italy is $31,000• Liechtenstein is $118,000• Zimbabwe is $200
![Page 67: Business Chapter1](https://reader033.fdocuments.in/reader033/viewer/2022061219/54b86fcb4a795975308b46b0/html5/thumbnails/67.jpg)
GDP per capita
• Generally people living in countries with higher GDP per capita tend to More things - TV’s, houses, cars Quality of life have longer life expectancies higher literacy rates better access to safe water
![Page 68: Business Chapter1](https://reader033.fdocuments.in/reader033/viewer/2022061219/54b86fcb4a795975308b46b0/html5/thumbnails/68.jpg)
USA’s GDP
• Economic Report GDP is down -3.8%
2007 - $48,000 GDP per capita 2008 - $46,176 GDP per capita
![Page 69: Business Chapter1](https://reader033.fdocuments.in/reader033/viewer/2022061219/54b86fcb4a795975308b46b0/html5/thumbnails/69.jpg)
Unemployment Rate
• The unemployment rate is the portion of people in the labor force who are not working.
• National Rate - 9.7%• Iowa Rate - 6.4%
![Page 70: Business Chapter1](https://reader033.fdocuments.in/reader033/viewer/2022061219/54b86fcb4a795975308b46b0/html5/thumbnails/70.jpg)
Why does unemployment happen?• There is reduced demand for the
goods and services being provied by various workers.
• Example If not very many people take the bus,
bus drivers will be laid off.
WHY UNEMPLOYMENT
![Page 71: Business Chapter1](https://reader033.fdocuments.in/reader033/viewer/2022061219/54b86fcb4a795975308b46b0/html5/thumbnails/71.jpg)
Personal Income
• Personal income refers to salaries and wages as well as investment income and government payments.
• This is the amount you report on your individual tax return.
![Page 72: Business Chapter1](https://reader033.fdocuments.in/reader033/viewer/2022061219/54b86fcb4a795975308b46b0/html5/thumbnails/72.jpg)
Retail Sales
• Retail sales is the sales of durable and nondurable goods bought by consumers.
• Durable goods• Non-durable goods
![Page 73: Business Chapter1](https://reader033.fdocuments.in/reader033/viewer/2022061219/54b86fcb4a795975308b46b0/html5/thumbnails/73.jpg)
Business Cycle
• Business cycle is the movement of the economy from one condition to another and back again.
![Page 74: Business Chapter1](https://reader033.fdocuments.in/reader033/viewer/2022061219/54b86fcb4a795975308b46b0/html5/thumbnails/74.jpg)
Prosperity
Prosperity is a period in which 1. most people who want to work are
working2. Businesses produce goods and
services in record numbers3. Wages are good4. Rate of GDP growth increases
![Page 75: Business Chapter1](https://reader033.fdocuments.in/reader033/viewer/2022061219/54b86fcb4a795975308b46b0/html5/thumbnails/75.jpg)
Recession
Recession is a period which1. Demand begins to decrease2. Businesses lowers production3. Unemployment begins to rise4. GDP growth slows for 2 quarters
![Page 76: Business Chapter1](https://reader033.fdocuments.in/reader033/viewer/2022061219/54b86fcb4a795975308b46b0/html5/thumbnails/76.jpg)
Depression
Depression is a phase1. High unemployment2. Weak consumer sales3. Business failures
![Page 77: Business Chapter1](https://reader033.fdocuments.in/reader033/viewer/2022061219/54b86fcb4a795975308b46b0/html5/thumbnails/77.jpg)
Great Depression
• 1930 - 1940• 25% unemployment• What caused it?
Banks failed The Stock market crashed
October 29,1929
![Page 78: Business Chapter1](https://reader033.fdocuments.in/reader033/viewer/2022061219/54b86fcb4a795975308b46b0/html5/thumbnails/78.jpg)
Recovery
Recovery is when1. Unemployment begins to decrease2. Demand for goods and services
increase3. GDP begins to rise again
![Page 79: Business Chapter1](https://reader033.fdocuments.in/reader033/viewer/2022061219/54b86fcb4a795975308b46b0/html5/thumbnails/79.jpg)
Inflation
Inflation is an increase in the general level of prices.
• Causes1. Demand for goods are greater than
the supply
![Page 80: Business Chapter1](https://reader033.fdocuments.in/reader033/viewer/2022061219/54b86fcb4a795975308b46b0/html5/thumbnails/80.jpg)
Deflation
• Deflation is an decrease in the general level of prices.
![Page 81: Business Chapter1](https://reader033.fdocuments.in/reader033/viewer/2022061219/54b86fcb4a795975308b46b0/html5/thumbnails/81.jpg)
Interest Rates
• Interest Rates is the cost of using someone else’s money.
• CD rate - CD’s at the bank• Mortgage rate - your mortgage on
your house• Bond rate - your rate on bonds
![Page 82: Business Chapter1](https://reader033.fdocuments.in/reader033/viewer/2022061219/54b86fcb4a795975308b46b0/html5/thumbnails/82.jpg)
Simple Interest
• Worksheet on simple interest
![Page 83: Business Chapter1](https://reader033.fdocuments.in/reader033/viewer/2022061219/54b86fcb4a795975308b46b0/html5/thumbnails/83.jpg)
Investmensts
• Stocks - respresents ownership in a corporation.
• Bonds - represents debt for an organization
![Page 84: Business Chapter1](https://reader033.fdocuments.in/reader033/viewer/2022061219/54b86fcb4a795975308b46b0/html5/thumbnails/84.jpg)
Government Debt
• Budget Surplus - spend less than they take in (taxes)
• Budget Deficit - spend more than they take in (taxes)
• National Debt - total amount the government owes
![Page 85: Business Chapter1](https://reader033.fdocuments.in/reader033/viewer/2022061219/54b86fcb4a795975308b46b0/html5/thumbnails/85.jpg)
Other kinds of debt
• Business debt - loans they have, bonds they have issued, and mortgages on property
• Consumer debt - Mortgages on homes Credit card debt Car loans All other debt
![Page 86: Business Chapter1](https://reader033.fdocuments.in/reader033/viewer/2022061219/54b86fcb4a795975308b46b0/html5/thumbnails/86.jpg)
National Debt
What is our national debt? http://www.brillig.com/debt_clock/
• February 2, 2009 $10,638,683,056,845.69 Over 10 trillion dollars
Goes up around $80,000 every second
• The estimated population of the United States is 304,687,566
• so each citizen's share of this debt is $31,752.01.
![Page 87: Business Chapter1](https://reader033.fdocuments.in/reader033/viewer/2022061219/54b86fcb4a795975308b46b0/html5/thumbnails/87.jpg)
QuickTime™ and a decompressor
are needed to see this picture.
![Page 88: Business Chapter1](https://reader033.fdocuments.in/reader033/viewer/2022061219/54b86fcb4a795975308b46b0/html5/thumbnails/88.jpg)
Which states produce the most oil?
Louisiana TexasCaliforniaAlaska
Iowa does not produce any oil
![Page 89: Business Chapter1](https://reader033.fdocuments.in/reader033/viewer/2022061219/54b86fcb4a795975308b46b0/html5/thumbnails/89.jpg)
What is Petroleum?
• Liquid that is found underground It can thick and black as tar It can be thin as water
• Also called oil Decomposition or the remains of plants and
animal life A fossil fuel Takes millions of year to make It’s Non-renewable
• Takes millions of years to form
• To use it, it must be refined
![Page 90: Business Chapter1](https://reader033.fdocuments.in/reader033/viewer/2022061219/54b86fcb4a795975308b46b0/html5/thumbnails/90.jpg)
Uses of Petroleum
What is petroleum made into? Gasoline - cars Diesel - trucks and tractors Natural Gas - heat our homes
• Propane• Kerosene
Fertilizers and pesticides Plastics
• Toys, pop bottles, car fenders• Phones, CD’s, computers
Paint
![Page 91: Business Chapter1](https://reader033.fdocuments.in/reader033/viewer/2022061219/54b86fcb4a795975308b46b0/html5/thumbnails/91.jpg)
More products
Health products• Aspirin, bandages, contact lenses
Sports equipment• Basketball and footballs
Medicines Soaps Inks
![Page 92: Business Chapter1](https://reader033.fdocuments.in/reader033/viewer/2022061219/54b86fcb4a795975308b46b0/html5/thumbnails/92.jpg)
Problems with Oil
• Damages the environment Air pollution
Produces carbon dioxide Contributes to global warming
Pollutes soil and water Oil spills can kills fish Refineries smell Refineries are loud
QuickTime™ and aTIFF (Uncompressed) decompressorare needed to see this picture.
![Page 93: Business Chapter1](https://reader033.fdocuments.in/reader033/viewer/2022061219/54b86fcb4a795975308b46b0/html5/thumbnails/93.jpg)
Refineries
• Refinery is a plant where crude oil is processed and refined into more useful petroleum products
• Raw or unprocessed crude oil is not useful in the form it comes in out of the ground.
QuickTime™ and aTIFF (Uncompressed) decompressor
are needed to see this picture.
![Page 94: Business Chapter1](https://reader033.fdocuments.in/reader033/viewer/2022061219/54b86fcb4a795975308b46b0/html5/thumbnails/94.jpg)
Trans-Alaska Pipeline
QuickTime™ and aTIFF (Uncompressed) decompressor
are needed to see this picture.
QuickTime™ and aTIFF (Uncompressed) decompressorare needed to see this picture.
![Page 95: Business Chapter1](https://reader033.fdocuments.in/reader033/viewer/2022061219/54b86fcb4a795975308b46b0/html5/thumbnails/95.jpg)
Alaska Pipeline
• Built in 1977• 800 miles long• Starts at the oil fields in the North
Slope and Artic Ocean• Moves oil to Valdez, Alaska
South, in the Gulf of Alaska At Valdez, Alaska oil is shipped to
refineries off the California coast
![Page 96: Business Chapter1](https://reader033.fdocuments.in/reader033/viewer/2022061219/54b86fcb4a795975308b46b0/html5/thumbnails/96.jpg)
Alternative Energy
• Renewable Resource A natural resource qualifies as a
renewable resource if it is replenished by natural processes
• Reduces Our Dependence on Coal and Oil
![Page 97: Business Chapter1](https://reader033.fdocuments.in/reader033/viewer/2022061219/54b86fcb4a795975308b46b0/html5/thumbnails/97.jpg)
QuickTime™ and aTIFF (Uncompressed) decompressor
are needed to see this picture.
Solar
Solar power is the energy derived directly from the sun. Converts sunlight into electricity.
Advantages• very abundant• Fastest growing type of alternative
energy• Generates no waste
![Page 98: Business Chapter1](https://reader033.fdocuments.in/reader033/viewer/2022061219/54b86fcb4a795975308b46b0/html5/thumbnails/98.jpg)
Ethanol
Alcohol derived from corn, sugar cane, switch grass
Advantages• It’s renewable resource• We grow it in the U.S.• Burns cleaner than oil
QuickTime™ and aTIFF (Uncompressed) decompressorare needed to see this picture.
![Page 99: Business Chapter1](https://reader033.fdocuments.in/reader033/viewer/2022061219/54b86fcb4a795975308b46b0/html5/thumbnails/99.jpg)
Bodies
• Biodiesel is a fuel for diesel trucks, cars, buses and tractors. It is usually made from soybeans.
• Advantages It keeps our air cleaner Helps stop global warming It’s renewable It smells like french fries
QuickTime™ and aTIFF (Uncompressed) decompressor
are needed to see this picture.
![Page 100: Business Chapter1](https://reader033.fdocuments.in/reader033/viewer/2022061219/54b86fcb4a795975308b46b0/html5/thumbnails/100.jpg)
QuickTime™ and aTIFF (Uncompressed) decompressor
are needed to see this picture.
Wind Power
Wind Power is the conversion of wind energy into a useful form, such as electricity, using wind turbines.
AdvantagesWind is freeDoesn’t polluteDoesn’t take up a lot of space
![Page 101: Business Chapter1](https://reader033.fdocuments.in/reader033/viewer/2022061219/54b86fcb4a795975308b46b0/html5/thumbnails/101.jpg)
Hydropower
• Hydropower, hydraulic power or water power is power that is derived from the force or energy of moving water, which may be harnessed for useful purposes.
• Advantages• Dams a river• Lasts a long time• Hoover Dam
QuickTime™ and aTIFF (Uncompressed) decompressor
are needed to see this picture.
![Page 102: Business Chapter1](https://reader033.fdocuments.in/reader033/viewer/2022061219/54b86fcb4a795975308b46b0/html5/thumbnails/102.jpg)
Conserve Oil
•Whenever possible, walk or bike•Carpool or take the bus•When you next buy a car, choose one that gets good mileage. •Reduce the amount of waste you produce by buying minimally packaged goods,•Insulate your walls and ceilings.•Modernize your windows.•Select the most energy-efficient models when you replace your old appliances.•Be careful not to overheat or overcool rooms
![Page 103: Business Chapter1](https://reader033.fdocuments.in/reader033/viewer/2022061219/54b86fcb4a795975308b46b0/html5/thumbnails/103.jpg)
Drill in Alaska?
• ANWR - Arctic National Wildlife Refuge in Alaska’s North Slope
• Before drilling for oil can happen, congress has to approve it Why?
Federal land Preserved wildlife area
QuickTime™ and aTIFF (Uncompressed) decompressor
are needed to see this picture.
![Page 104: Business Chapter1](https://reader033.fdocuments.in/reader033/viewer/2022061219/54b86fcb4a795975308b46b0/html5/thumbnails/104.jpg)
Free Market Economy
• Tends to supply what is demanded.• Consumers dictate what and how
much producers make.
![Page 105: Business Chapter1](https://reader033.fdocuments.in/reader033/viewer/2022061219/54b86fcb4a795975308b46b0/html5/thumbnails/105.jpg)
Command Economy
• The government makes the economic decisions for the country.
![Page 106: Business Chapter1](https://reader033.fdocuments.in/reader033/viewer/2022061219/54b86fcb4a795975308b46b0/html5/thumbnails/106.jpg)
Money
• Is referred to as the medium of exchange.
![Page 107: Business Chapter1](https://reader033.fdocuments.in/reader033/viewer/2022061219/54b86fcb4a795975308b46b0/html5/thumbnails/107.jpg)
Economics
• Watch video of macro economics
![Page 108: Business Chapter1](https://reader033.fdocuments.in/reader033/viewer/2022061219/54b86fcb4a795975308b46b0/html5/thumbnails/108.jpg)
Research a Career
• Choose 2 careers you may be interested in.
• Research the Career Occupation Outlook Handbook http://www.bls.gov/OCO/
• Fill out the worksheet
![Page 109: Business Chapter1](https://reader033.fdocuments.in/reader033/viewer/2022061219/54b86fcb4a795975308b46b0/html5/thumbnails/109.jpg)
Entrepreneurship
• Entrepreneurship is the process of starting, organizing, managing, and assuming the responsibility for a business. Examples
Business Owners- doctors, insurance sales people,
Management – principals, bosses, shift managers, etc.
![Page 110: Business Chapter1](https://reader033.fdocuments.in/reader033/viewer/2022061219/54b86fcb4a795975308b46b0/html5/thumbnails/110.jpg)
Entrepreneur
• Someone who takes a risk and start a new business.
• Bill Gates - Microsoft• Who are some others?• In your notes, list 3 other
entrepreneurs.
![Page 111: Business Chapter1](https://reader033.fdocuments.in/reader033/viewer/2022061219/54b86fcb4a795975308b46b0/html5/thumbnails/111.jpg)
Entrepreneur
• Think of something you like to do You can sell a good
Bake cookies, cater meals, open a restaurant Take pictures Sell books, video games, surfboards, skis, bikes, TV’s, toys,
dogs, shoes, clothes, You can provide a service.
Fixing cars Open a gym Baby-sit You can be a band that plays music Cut hair, give manicures,
![Page 112: Business Chapter1](https://reader033.fdocuments.in/reader033/viewer/2022061219/54b86fcb4a795975308b46b0/html5/thumbnails/112.jpg)
New Business
• You are going to start your own business doing something you like to do.
• You are going to be an entrepreneur.
![Page 113: Business Chapter1](https://reader033.fdocuments.in/reader033/viewer/2022061219/54b86fcb4a795975308b46b0/html5/thumbnails/113.jpg)
What has Bill Gates done?
• The Bill and Melinda Gates Foundation pays for children’s immunizations all over the world.
• Results In 1960, the death rate of children was
20 million a year In 2007, the death rate of children was
10 million a year
![Page 114: Business Chapter1](https://reader033.fdocuments.in/reader033/viewer/2022061219/54b86fcb4a795975308b46b0/html5/thumbnails/114.jpg)
continued
• Tobacco has become the world’s leading cause of death. 14,000 people die everyday from smoking
tobacco
• Global effort to reduce tobacco use has started. Bill & Melinda Gates have donated $125
million dollars.