Day #62/9-12

AnnouncementsQuiz corrections: PLEASE PLACE IN THE BASKET / BIN

Unit #1 Outline: Extra credit for the test. • Due day of the test.

Unit #1 Test

• Odd: Thurs., 2/15

• Even: Fri., 2/16

• 40 multiple choice questions and 2 short answers.

• Corrections: After school

• Weds., 2/28-Tues., 3/6

Corny Jokes1. Why don’t penguins like talking to strangers at parties?

THEY FIND IT HARD TO BREAK THE ICE!

2. Why did the person get fired from the calendar factory?

THEY TOOK A COUPLE OF DAYS OFF!

3. Did you hear about the guy who invented TicTacs?

THEY SAY THEY MADE A MINT!

Review Ch. #6, Increasing Production: Economic Growth

1. What is economic growth?

2. How does the PPC demonstrate economic growth?

3. If the PPC shifts outward, what does this mean? (I am looking for more than “economic growth” or the “economy is getting bigger.”)

4. What are the two main reasons the PPC would shift outward?

5. How does these reasons result in, or cause, economic growth

6. What does a leftward shift of the PPC indicate?

7. What is the difference between a dot inside the curve and a leftward sift of the curve?

Name: Day #6 ClassworkRead East Asia’s economic miracle and answer the questions below.

1. How did South Korea increase its economic growth?

2. How does it demonstrate the reasons for an increase in economic growth from ch. #6?

Ch. #7 The Circular Flow ModelMarket (capitalism) and mixed market economies (mostly capitalism): organized by private markets

Buyers and sellers: determine supply, demand, and prices

This model shows us how it works.• Households

• Business firms

• Resource / factor markets

• Product markets

Ch. #7 The Circular Flow Model

Ch. #7 The Circular Flow ModelProduct Market

Households: • Flow in: buy goods and services (demand)

• Flow out: money (income)

Business firms: • Flow in: money (income)

• Flow out: sell goods and services (supply)

Ch. #7 The Circular Flow ModelResource or Factor Market

Households: • Flow in: money (income)

• Flow out: sell resources (supply)

Business firms: • Flow in: buy resources (supply)

• Flow out: money (income)

Ch. #7 The Circular Flow ModelDemonstrates: the economy is interdependent

Stand and share1. What is the circular flow model?

2. What role do households fulfill or have (producer or consumer) in the product market? Resource market?

3. What role do business firms fulfill or have (producer or consumer) in the product market? Resource market?

4. Complete the following: In the product market households (choose one) spend / earn income.

5. Complete the following: In the resource market households (choose one) spend / earn income.

6. Complete the following: In the product market business firms (choose one) spend / earn income.

7. Complete the following: In the resource market business firms (choose one) spend / earn income.

Name: __________ Day #6 ClassworkResource Market

6. Who is the producer? Households / business firms

7. Who is the consumer? Households / business firms

8. What is bought and sold? Products / resources

9. What do households do? Earns / spends income

10. What do business firms do? Earns / spends income

Product Market

1. Who is the producer? Households / business firms

2. Who is the consumer? Households / business firms

3. What is bought and sold? Products / resources

4. What do households do? Earns / spends income

5. What do business firms? Earns / spends income

Activity: Circular Flow ModelBusiness firms: earn as much money as possible

Households: collect as many goods and services as possible

Activity: Circular Flow ModelHouseholds: sell your resources to business firms to earn income•Negotiate a price•Higher the better

Business firms: buy resources to produce•Negotiate a price• Lower the better

Remember: lots of competition

Activity: Circular Flow ModelBusiness firms: use resources to produce goods and services to households•Negotiate a price

•Higher the better

Households: use the income from selling your resources to business firms to buy goods and services•Negotiate a price

• Lower the better

Activity: Circular Flow ModelBusiness firms: earn as much money as possible

Households: collect as many goods and services as possible

Name: Day #6 Classwork1. How did the households depend on businesses in the

simulation / activity?

2. How do businesses depend on the households businesses in the simulation / activity?

Bonus!2 points on your test!

Stay after school between now and the test day: Odd., 2/15; Even 2/16

Write a response to the following question:

How is economic growth related to the law of diminishing marginal returns?

Practice Day #4*answer on the same sheetFind the law of diminishing returns.

A. As a fixed factor is added to variable factors, eventually the marginal product increases.

B. As variable factors are added to fixed factors, eventually the marginal product increases.

C. As fixed factors are added to variable factors, eventually the marginal product decreases.

D. As variable factors are added to fixed factors, eventually the marginal product decreases.

PracticeWorkers Total Production (in units) Marginal Production (in units)

0 0 0

1 25 25

2 55 30

3 80 35

4 110 30

5 135 25

At what level of workers does diminishing returns for hiring another worker set in?

Practice Day #4*answer on the same sheet

Workers Total Production (in units) Marginal Production (in units)

0 0 0

1 25 25

2 55 30

3 80 35

4 110 30

5 135 25

At what level of workers does diminishing returns for hiring another worker set in?