TraditionalMarketCommandTotal Team 1 Team 2 Team 3 Team 4 Team 5 Team 6.

Bead Game SimulationTraditional Market Command Total

Team 1

Team 2

Team 3

Team 4

Team 5

Team 6

Reflection Questions1. Which system had the most incentive to

work? Why?2. Which system had the least incentive to

work? Why?3. Which system was the most inefficient

by modern standards? Explain.4. Which system would you like to live in,

why?

Standards Mastery SheetTotal Correct

Total Number

MasteryPercentage

SSEF1a 1 2 3 4 5 37

+ + + - + - 4 6 67

SSEF1b 9 10 11 12 13 15 16 39

SSEF1c 6 8 21 22 23

SSEF1d 17 18 19 20 26 40

SSEF2a 23 24 25 27 28 29 30 31 32 33 34 35 36

SSEF2b 7 8 14 23 38 40

Economic System – method used by society to allocate/distribute the scarce resources, in order to provide for the wants and needs of the people

Economic System

1. What goods and services should be produced?2. How should these goods and services be

produced?3. For Whom to produce them for?

Three Economic Questions

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1. Traditional economy – relies on habit, custom, or ritual to decided the 3 economic questions

2. Market economy – economic decisions are made by buyers and sellers trading freely.

3. Command Economies – in a centrally planned economy, the central government decides how to answer the three economic questions.

4. Mixed Economies – most modern economies are mixed economies, market-based economic systems in which government plays a role in the market.

Four Economic Systems

Daily Assignment Chapter 2 Section 1 – pgs. 23-27

Bead Game Simulation

Economic Freedom - freedom to make choices free of the government• Individual – where to work, study, consume• Business – what, where and how to produce

Economic Freedom

Economic Efficiency - making the most of scarce resources, using your resources wisely and productively• Technological innovations allow society to be more productive• Humans to robots

Economic Efficiency

Economic Security - government will provide a safety net in times of economic downturns• Social Security, welfare, unemployment checks, etc.

Economic Security

Economic Predictability - knowing that goods and services will be consistently available• Gas, food, energy, etc.

Economic Predictability

Economic Equity - Fairness, being paid according to your skill level, not being discriminated against• Lebron James is higher paid than a teacher• A teacher is higher paid than a cashier at Wal-mart

Economic Equity

Economic Growth – improving the economy from year to year, improving standard of living as measured by GDP. • Individual – better jobs, nicer homes, newer cars….better stuff!• Business – produce more, increase customers, open new factories, etc.

Economic Growth

Economic innovation – improving upon existing technology in order to improve efficiency.• Walkman to the iPhone, Record Player to Digital Media

Economic Innovation

Additional Goals – future goals for a society • Environmental protection, full employment, universal medical care, etc.

Additional Goals

Economic Efficiency

Picture Summary: This picture represents assembly line production at an automobile manufacturing plant.

This shows how the division of labor and specialization can increase efficiency.

Economic Goals and Societal Values Poster Project – pgs. 26-27Poster Requirements:1. Title - Economic Goals and

Societal Values2. Summary Statement – “The Economic Goals

and Societal Values provide a basic framework for each society and their attempts to provide for their people.”

3. Pictures of each goal represent each of the economic and social goals.

• 1 if working alone• 2 if working with a partner• 3 if working with a group of 3

4. Label, describe and summarize each picture

1. Economic Freedom2. Economic Efficiency3. Economic Security 4. Economic Predictability5. Economic Equity6. Economic Growth7. Economic Innovation8. Additional Goals

Economic Goals and Societal ValuesSummary Statement:

The Economic Goals and Societal Values provide a basicframework for each society and

their attempts to provide fortheir people.

Economic EfficiencyDefinition: picture represents an efficient use of resources through

assembly line production

Economic Security

Economic Growth

Economic Equity

Economics Goals and Societal Values Poster Project pg. 23 - 27

Economic Freedom Additional Goals

Economic Innovation


Poster Requirements:1. Title - Economic Goals and Societal Values2. Summary Statement – Purpose of economic and Societal Values3. At least 8 pictures to represent each of the Economic Goals and Social Values4. Label, definition and picture description for each of the 8 Economic Goals and Societal Values

Review Economic GoalsStatements Economic Goal

1. Last week I willingly enrolled in college courses at Coastal. I am so happy that I make my decisions about my future.

2. My uncle lost his job, but thankfully he is able to receive unemployment checks.

3. Wal-Mart recently upgraded all of their registers to touch screen monitors.

4. General Motors replaced all of their human workers with robots in order to increase productivity.

5. As a result of the internet and technology, our economy has experienced significant expansion over the past 30 years.

6. I can always expect Publix to have the food I like!

7. Hopefully in the future we will have full employment.

8. With every degree/skill I earn, I improve my ability to make money.

1. Economic Freedom

2. Economic Security

3. Economic Innovation (Efficiency)

4. Economic Efficiency (Innovation)

5. Economic Growth (Innovation)

6. Economic Predictability

7. Additional (Future) Goals (Equity)

8. Economic Equity (Growth)

Activator

Imagine that you are walking into Walmart. List 3 items that you could purchase and the departments that you would find them in.

Market – buyers and sellers meet to exchange goods and services Market Economy – economic decisions are made by consumers and

businesses based on buying and selling of goods and services All resources are privately owned Any income derived from selling resources goes exclusively to the owner The government has no role

The Free Market

Consumer Sovereignty - in a free market, consumers determine the goods that are produced; this makes them "sovereign" over production in an economy.

“Ruler” of the market; expressed through a dollar vote for products when we make purchases. “The customer is always right”.

When consumers buy products, their “dollar vote” signals to producers what to make and how much.

Role of the Consumer

Specialization Specialization – the separation of tasks within a

system; people focus on a specific purpose/task Division of Labor – Workers perform fewer tasks

in order to operate more efficiently

Glynn Academy – teachers in different departments Each teacher can master their content Present it in the most efficient manner possible

Specialization Examples

Social Studies

Math

Science

English

Specialization Examples

Rancher

Publix Worker

Slaughter House Meat Cutter

Final Good (Output)

Consumer Good

Productivity – average amount of output (good or service) per unit of input (labor, machine, etc.) Increased productivity means to do more with less Capital investments allow increased efficiency

Specialization and Efficiency

Mary looks over reports on four of her workers. Jack made 25 baskets in 5 hours. Walter made 36 baskets in 6 hours. Rudy made 40 baskets in 10 hours. Sam made 22 baskets in 4 hours. Jim made 50 baskets in 10 hours. Who has the greatest productivity?

Productivity

Jack 25/5 = 5 Baskets per hourWalter 36/6 = 6 Baskets per hourRudy 40/10 = 4 Baskets per hourSam 22/4 = 5.5 Baskets per hourJim 50/10 = 5 Baskets per hour

Walter has the greatest productivity

Productivity Creates Wealth

29

3rd World Countries Developed Countries

http://www.bighambrothers.com/one-pass-plow-cotton.htm

Household – Person or group of people living in a residence Consumers - use the finished goods and services

(outputs) to satisfy wants and needs Firm – business, organization that uses factors of

production (inputs) to produce a product, which it then sells Suppliers – transform “inputs” (F.O.P.) into “outputs”

(products)

Households and Firms

Product Markets – Households and firms interact; producers sell their goods and services to consumers Households are buyers of goods and services Firms are sellers of goods and services (outputs)

Product Markets

Factor Markets – the markets where productive resources (F.O.P)/Inputs are bought and sold Labor - Firms (businesses) hire workers and pay them

salaries Land - Purchased/rented land Capital - Use money from households (savings,

investment, etc) to purchase capital goods

Factor Markets

Factor MarketMarket for

F.O.P• Households

sell• Firms buy

Firms(Business)• Produce and sell

Goods and Services• Hire and use F.O.P.

Households• Buy and Consume

Goods and Services• Own and sell

the F.O.P

Product Market

• Market for Goods

and Services• Firms sell

Households Buy

Circular Flow Model of Economic Activity – shows the flow of money and goods/services from and to businesses and householdsConsumer Spending

Consumer Goods and Services

Final Goods and Services Sold

Business Income/Revenue

Land, Labor, Capital - provided by household Inputs for Production

(F.O.P.)

Payment for F.O.P. – Rent (Land) Wages (Labor), Interest (Capital), Profit (Entrepreneurs)

Income to Households/Individuals

Application Questions1. In the factor market, what do businesses provide households?2. The flow of goods and services in the product market is represented by which

firm and products on the model below?3. When you apply for a job at the local Starbucks which market are you in?4. Which color arrows represent the flow of money; what color arrows represent

the flow of inputs and outputs.

Income/payment the F.O.P

Starbucks/CoffeeFactor

Blue/Tan

Daily Assignment - Circular Flow Model of Economic Activity

Household1. ________________________

FirmFirm 1. _____________________________

Firm 2. _____________________________

Factor Market

Product Market

Consumer Spending

1. _________________________

Goods Purchased

1. ______________________________

2. _______________________________

Goods Offered1. ___________________________

2. ___________________________

Business Income

1. _________________________

Factor of Production Offered

1. ___________________________

Input for Production

1. ___________________________

Payments for F.O.P

1. _________________

Weekly Income

1. __________________

Circular Flow Model of Economic Activity

Household1. ________________________2. ________________________

FirmFirm 1. _____________________________

Firm 2. _____________________________

Factor Market

Product Market

Consumer Spending

1. _________________________

Goods Purchased

1. ______________________________

Goods Offered1. ___________________________

2. ___________________________

3.___________________________

Business Income

1. _________________________

Factor of Production Offered

1. ___________________________

Input for Production

1. _________________________

2. _________________________

3. ________________________

Payments for F.O.P

1. ________________2. ________________3. ________________

Weekly Income

1. __________________

ElisaMarcella

CilantrosBooks a Million

TacosBurritosFajitas

Fajitas

9.49 9.49

Labor/SalespersonStockersCoffee SellersCashiers

200 3000- Lease2200 – Electric400 - Water

Stossel - Rinkinomics

Economic Freedom

Competition Private Property Rights

Self-Interest Voluntary Exchange

Description Description Description Description Description

Profit Motive

Description

American Free Enterprise

Example Example

1.

Example

1.

Example

1.

Example

1.

Example

1.

Description - Individuals’ right to choose your occupation and what to buy. Firms’ right to hire or produce. The right to conduct yourself with little government interference.

Examples: 1. I had the freedom to become a teacher and a coach; I can buy whatever I

want. 2. Firms range from automakers to fast food.

Economic Freedom

When individuals willingly engage in a transaction where both parties benefit. Allows people to decide what and when they want to buy and sell, rather than forcing them to

buy and sell at particular times or specific prices Examples:

When I get a haircut, I get a fresh look, Sportsclips gets my money When I buy gasoline, I get energy for my car, the firm gets my money

Voluntary Exchange

Description – Individuals and businesses have the right to buy and sell as much property as they want Property owners can prohibit others from using their property The fifth amendment protects us from the federal or state governments taking

our property for their own use. Examples:

Households and firms are encouraged to own property and enjoy the protection of the property

Firms can own and operate their business with limited interference from the government

Private Property Rights

The force that encourages people and organizations to improve their material well-being Examples

Many people in our society are driven by the desire to make money, which ultimately benefits the market

People in the U.S. are rewarded for innovations and efficiency via cash incentives

Profit Motive

Competition – efforts among sellers/producers to attract consumers at various prices At the heart of market economic philosophy

Examples: Mcdonalds vs. Burger King Walmart vs. Target

Competition

Circular Flow Model of a Mixed Economy

HouseholdsFirms

Factor Market

Product Market

Consumer Spending/Investing

Goods and Services Purchased:

Goods and Services Sold


Land, Labor, Capital, Entrepreneur

Inputs for Production (F.O.P.)

Payment for F.O.P. – Wages, rent, capital goods


Taxe

sTaxes

Expenditures

Expenditures

Taxe

s

Taxes

Government acts an informer, protector, provider, and regulator Government has the responsibility to protect property rights,

contracts and other business activities

Role of the Government in a Market Economy

http://www.ecomarketingsolutions.com/

Government has the responsibility to protect property rights, honor contracts, protect against discrimination, monopolies or unfair business practices

Role of the Government in a Market Economy

http://www.ecomarketingsolutions.com/

Role of the Government as Informer: Make sure that producers provide consumers with accurate information

Consumers use govt. info. to protect themselves from dangerous products and fraudulent claims.

Role of the Government as Informer

Role of government as a protector: Federal government acts to preserve competition, regulates airlines,

communications, banking, etc. Though they do not control it, they impose various restrictions on the private

market Gas stations, must dispose of used motor oil properly Zoning laws, prevent homeowners from running businesses out of their homes

Role of Government as Regulator

Government regulation can have negative effects on businesses and consumers Negative effects:

1. Government rules can increase the cost of business2. Stifled competition can lead to high prices3. Increase of governmental spending can lead to higher taxes

Negative Effects of Regulation

Public sector- the part of the economy that involves the goods provided by the government

Private sector- the part of the economy that involves the goods provided by private firms

Government as a Provider

http://www.sleetherz.com/wp-content/uploads/microsoft-logo.png

Public Good/Service - A shared good or service for which it would be impractical to make consumers pay individually and to exclude nonpayers. Education, military, National Park, Snow Removal, Fireman

Public Goods and Services

When the government takes from one group and reallocates to another group

Welfare, Social Security, Unemployment, Food Stamps, etc.

Redistribution of Income

The market, on its own, does not distribute resources efficiently, choices made by individuals determine what goods get made, how, and how much Free riders, monopoly, roads and bridges in a sparsely populated area, etc.

Market Failure

Negative Externality – negative effects experienced by people that had no part in the consumption of a good or service Cigarette smoker, chemical waste dumping, foreclosures and property values,

etc.

Negative Externalities

Negative Externality – negative effects experienced by people that had no part in the consumption of a good or service

Negative Externalities

Goods/services that generate benefits to many people, not just those who pay for the goods Education, better technology, medicine, etc.

Positive Externalities

Free-Rider Problem A free rider is someone who would not choose to

pay for a certain good or service, but who would get the benefits of it anyway if it were provided as a public good

Write an example of a negative and positive externality. What kind of government regulation could be used to

eliminate your negative externality?

Application Question

Command – central authority owns and operates the Factors of Production

Centrally Planned Economy – central government answers the three economic questions; WHAT to produce, HOW to produce, and FOR WHOM to produce Oppose private property, free market pricing, economic

freedom

Command Economies

Karl Marx – German social philosopher that studied economic systems in Europe

Communist Manifesto – written by Marx and Frederick Engels became basis for modern-day command economies

Thought capitalism would fail because it put too much wealth in the hands of few and left everyone else poor

Believed in a “no-class” system, where all share in wealth/power Socialism – distribution of wealth and F.O.P. equally amongst society Communism – political and economic system with centralized economic

decision-making Authoritarian Government – exact strict obedience from their citizens; do not

allow individual freedom

Socialism and Communism

1. What was Adam Smith’s ethnic and professional background?

2. What was the name of the book that he published; when was it published?

3. What did Smith identify in the book?

4. What did he assert about specialization and division of labor?

5. What did he believe about the role of government in the economy?

6. Define the French term Laissez Faire; why did Smith believe in Laissez-Faire economics?

7. What is meant by his metaphor of the Invisible Hand?

8. How do both consumers and businesses benefit from this philosophy?

Chapter 2 Section 2 – Daily Assignment Economic Profile Adam Smith pgs. 33

• Scottish, Philosopher, Professor

• Wealth of Nations

• Land, labor and capital as the factors of production that generate wealth

• Productivity increases through specialization

• Government must leave individuals as free as possible to pursue their interests

• Individuals try to pursue their own self-interest will benefit all of society

• Let them do as they please

• Consumers buy what they want, producers supply for profit

1. How did the Soviet Union arise?2. Where did Soviet planners allocate the

factors of production?3. How did the Soviet Union control

agriculture?4. What three industries did Soviet Planners

favor?5. How did the Soviet Union view

entrepreneurial endeavors?6. What was the quote used by Soviet

consumers as a joke?7. Why were Soviet Consumers’ left

unsatisfied? Page 39 – Russia in Crisis8. How did many Russians initially respond

to the Communist collapse?9. What happened over the next decade?10. How did Russia deal with corruption?11. What were some characteristics of

Russia’s financial problems?12. What evidence can be seen that success

is in sight?

Chapter 2 Section 3 – Daily Assignment Questions “The Former Soviet Union” pgs. 36-38

Do Now Ch 2 Section 3 Scenario 1You have two cows.You trade one to your neighbour for a bull.You only produce what you need to survive. Scenario 2You have two cows.The State takes both and gives you just

enough milk to live Scenario 3You have two cows.You sell one and buy a bull.Your herd multiplies, and your wealth grows.You sell your herd and retire on the income.

1. What economic system matches each scenario?

2. Which scenario do you think is the most ideal and why?

3. Which scenario do you think sounds the most like the United States? Why?

4. What countries do you know of that could fall into scenario 2.

Tradition Command Market

What to Produce?

How to Produce it?

For Whom to Produce?

Whatever is necessary for the tribe to survive.

Based on tradition, habit and custom; the way its always been done.

The tribe

Whatever the government tells them to produce.

Based on the government.

Whoever the government tells them to produce it for.

Whatever is in demand by the consumers.

The most efficient method possible; technological innovations.

Consumers that are willing to purchase.

Daily Assignment – Comparing Economic SystemsTradition Command Market

1.

2.

3.

1.

2.

3.

4.

1.2. 3.4. 5. 6.7.8.9.

1.

2.

1.

2.

1.

2.

3.

4. 5.

6.

1.

2.

1.

2.

3.

4.

5.

1.

2.

3.

4.

Adv

anta

ges

Dis

adv

anta

ges

Exa

mpl

es

Central African Mbuti

Australian Aborigines

Inuits of Canada

Everyone knows their role in society/economy

Economic questions are answered based on tradition

Discourages new ideas

Lack of progress, lower standard of living

North Korea

Cuba

China

Former Soviet Union

Change economic direction in a short time Health and public services are available at little or no cost (regardless of income)

Not designed to meet wants of consumersDoes not give incentive to work hardLarge decision-making bureaucracyLack of economic flexibility Lack of economic freedom, profit motive

United StatesCanadaJapanSouth KoreaSingaporeGermanyFranceGreat BritainWestern Europe

Adjust to change over time

Individual economic freedom

Limited government interference

Decision-making is decentralizedVariety of goods and services

High degree of consumer satisfaction

Does not provide basic needs for everyoneLack of public goods by private marketsHigh degree of uncertainty, job loss, competitionMarket failures (monopoly)

1. What traditions are mentioned regarding American society?

2. List some additional traditions that you have in your family.

3. How did the Inuit exemplify a traditional economic system?

4. How did the State Planning Commission determine the direction of the Soviet economy?

5. What shortcut did Soviet workers take in order to fill their quotas; what did it lead to?

6. How did the State Planning Commission respond to a shortage of male workers?

7. Describe what a “dollar vote” indicates.

8. Describe how the market adjusted from the 1970s gas shortage, to the 1980s.

9. What examples are provided of the various goods and services provided in a market economy?

10.How do both the majority and minority end up satisfied in a market economy?

11.What are the three conditions that must be met to ensure that market economies do not fail?

• Thanksgiving, bouquet toss, shaking hands

• Open one present on Christmas Eve

• Share the spoils of the hunt

• Determined the needs based on governmental decisions

• Made their products heavier

• Made the women go to work

• Spending money to show firms what to produce

• People bought less gas-guzzling cars and bought more fuel-efficient ones

• Internet, electric dog collars, Cable TV

• Both can get what they want

• Competition, Flexibility, Access to information

Free Enterprise – competition in the marketplace is allowed to flourish with no interference from government

Modified Free Enterprise (mixed economy) – businesses are free to compete with some government regulation/intervention

Modern Economies

North Korea

Cuba

Iran

China

Mexico France

South Africa

Poland Japan

United Kingdom Hong Kong

Canada Singapore

United States

Centrally Planned Free Market

Laissez Faire – no government intervention in the economy Some government intervention is necessary in the economy;

some needs are difficult to answer in the marketplace National defense, roads and highways, education, etc… Government acts a protector, regulator and overseer of

economy

Laissez Faire in a Modern Economy

Taxes from both households and businesses Income tax, state income tax, social security,

Medicare/Medicaid, unemployment insurance, etc.

Government Money

Government purchases land, labor, and capital from households

United States gov’t pays 2.8 million employees $9.7 billion for labor

Government in the Factor Market

Government purchases goods and services from firms (businesses) Office supplies, telephones, computers, etc.

Government in the Product Market

Daily Assignment – Economic GoalsEconomic Goals Market Command Tradition

Economic Freedom Yes - People can produce what they want, how they want to and for whom

No - Many aspects of economic activity are tightly controlled by the government

No - Extremely limited, a person’s role in society is based on custom, heritage and tradition

Economic Efficiency

Economic Security


Economic Equity

Economic Growth

Economic Innovation

Yes – specialization, wise use of resources leads to profit

No – Many resources go unused, Cuba 50% of fertile land is not utilized

Yes/No – Tribal living does not waste resources/lack modern standards of efficiency and growth

No – a pure market economy prescribes to laissez faire. (mixed economies have some safeguards)

Yes - employment and government sponsored programs are assured

Some – your job and provisions are guaranteed by your tribe

Yes – most market economies have high levels of resource predictability

No – command economies struggle to meet the needs of the consumer

No – in most cases unpredictable, because resources can become scarce

Yes – fairly paid based on your skills

No – private incentive, profit motive do not exist

No – based on customary means of production not fair pay for acquired skills

Yes - a fast rate due to competition and profit motive

Slow - lack of growth because of a lack of efficiency and profit motive

No - lack of growth due to a lack of productivity and innovation

Yes – innovation and technology leads to profit

Limited – lack of innovation because of a lack of profit motive

No – lack of modern innovations

1. Traditional Economy

2. Command Economy

3. Market Economy

4. Market

5. Free Market

6. Specialization

7. Division of Labor

8. Household

9. Consumer

10.Firm

11. Supplier

12.Product Market

13.Factor Market

14.Centrally Planned Economy

15. Socialism

16. Communism

17. Authoritarian

18. Laissez-Faire

Chapter 2 – VIS Terms

Junk!!!

Daily Assignment Group PresentationsUsing the Chart Below, identify each groups Economic Goals andSocietal Values and the picture they used to represent each goal.

Group Number Economic Goal Picture

Include On Your Test

1. Name2. Date (1-30)3. Class Period4. Chapter 2 Test5. ID: A, B, C

Junk!!!

Due Today

1. Economic Systems D.A.2. Video Questions - North Korea 3. Circular Flow (Elisa and Marcella) 4. Comparing Economic Systems -

Reflection Questions and Chart5. Free Enterprise Flow Chart6. Study Guide Chapter 2 7. CW Puzzle8. Terms Ch. 29. Daily Tens (9)10. Essential Questions (3)11. Notes12. Test Standard Sheet (include original

test answers + corrections)

Junk!!!

Study Guide Chapter 21. Economic System

2. What to produce, How to produce them, Who to produce them for

3. Economic: efficiency, freedom, security, predictability, equity, growth, innovation, additional goals

4. Tradition, custom, ritual, habit

5. Central planners dictate the what, how, for whom

6. Buying and selling of households and firms

7. Market

8. Market economy

9. Capitalism

10. Households and Firms

11. Input is something used to produce and output, which is a final good or service

12. Product

13. Factor

14. Adam Smith, Wealth of Nations

Study Guide Chapter 215. Be limited in its role in the economy, “Let them

do as they please”.

16. Invisible Hand

17. See Circular Flow

18. a) Product

b) when it changed hands from the household to the firm

c) Factor, labor

d) Grills, hostesses, cashiers

e) Factor

19. Karl Marx, Communist Manifesto

20. That it would fail because it put too much money in the hands of the rich and not in the hands of the poor

21. Communism, Socialism

22. Authoritarian

23. Economic Freedom

24. Property Rights

25. Profit Motive

26. Voluntary Exchange

27. Competition

Include on Test

1. Name

2. Date (9-4)

3. Class Period

4. ID: A, B or C

5. Test Economics Systems

Study Guide Chapter 3

15. Economic Freedom

16. Property Rights

17. Profit Motive

18. Voluntary Exchange

19. Competition

1. Give an example of a positive and negative incentive.

2. Explain why the United States is not a true “pure market/free enterprise” system.

Extra Credit

1. Which type of economic system do you think is the best method for allocating scarce resources? Explain why.

2. Other than the goal that you identified on your test, write the one that you think is the next most important. Explain why.

Extra Credit

Economic Goals and Societal Values - pgs. 23-27Economic Goal and Societal Values

Summary Example

1. Economic Efficiency

2. Economic Freedom

3. Economic Security and Predictability

4. Economic Equity

5. Economic Growth and Innovation

6. Additional Goals

Making the most of scarce resources

Manufacturer knowing the best way to use resources wisely (Assembly Line)

Freedom from government intervention in the production and distribution of goods/services

Working where you want, spending money the way that you want, owning a business, etc.

Knowing that goods and services will be available, payments made on time, government will provide a safety net in times of economic downturns

Security – Unemployment Checks, Social Security, Stimulus MoneyPredictability – gas at gas pumps, food at store

Fairness, being paid according to your skill level, not being discriminated against

Lawyers earn more than nurses, computer programmers more than truck drivers

Economic growth refers to improving standard of living and GDP. Innovation, improving existing technology.

Agricultural age to industrial age to information age. Innovations in computers, communication.

Future goal for society. Environmental protection, full employment, universal medical care.

Circular Flow Model of Economic Activity

Households Firms

Factor Market

Product Market

Consumer Spending/Investing

Goods and Services Purchased: Caramel Frappuccino

Goods and Services Sold


Land, Labor, Capital, Entrepreneurs Inputs for

Production (F.O.P.)

Payment for F.O.P. – Wages, rent, capital goods


1. How do each of the economic systems answer the three economic questions?

2. How does the Circular Flow model show a market economy?

Essential Question #1 +2

1. Tradition – based on habit, ritual, custom2. Market - based on buyers and sellers3. Command – based on central planners/government 4. Mixed – market based with some government regulation

• Flow of money from households to firms (product market), firms to households (factor market).

• Flow of final goods and services (outputs) to households (product market), and factors of production (inputs) to the firm (factor market).

3. What do the economic and social goals help us to understand?

• Explain how each society provide goods and services for their people in light of scarce resources.

1. How do each of the economic systems answer the three economic questions?

Essential Question #1

1. Tradition – based on habit, ritual, custom2. Market - based on buyers and sellers3. Command – based on central planners/government

3. What do the economic and social goals help us to understand?

Essential Question # 3

• Explain how each society provide goods and services for their people in light of scarce resources.

"Winning is not a sometime thing; it's an all the time thing. You don't win once in a while; you don't do things right once in a while; you do them right all the time. Winning is a habit. Unfortunately, so is losing. There is no room for second place. There is only one place in my game, and that's first place. I have finished second twice in my time at Green Bay, and I don't ever want to finish second again. There is a second place bowl game, but it is a game for losers played by losers. It is and always has been an American zeal to be first in anything we do, and to win, and to win, and to win. Every time a football player goes to play his trade he's got to play from the ground up-from the soles of his feet right up to his head. Every inch of him has to play. Some guys play with their heads. That's O.K. You've got to be smart to be number one in any business. But more importantly, you've got to play with your heart, with every fiber of your body. If you're lucky enough to find a guy with a lot of head and a lot of heart, he's never going to come off the field second.

Vince Lombardi “What it Takes To Be Number 1”

Running a football team is no different than running any other kind of organization-an army, a political party or a business. The principles are the same. The object is to win-to beat the other guy. Maybe that sounds hard or cruel. I don't think it is. It is a reality of life that men are competitive and the most competitive games draw the most competitive men. That's why they are there-to compete. To know the rules and objectives when they get in the game. The object is to win fairly, squarely, by the rules-but to win. And in truth, I've never known a man worth his salt who in the long run, deep down in his heart, didn't appreciate the grind, the discipline. There is something in good men that really yearns for discipline and the harsh reality of head to head combat. I don't say these things because I believe in the "brute" nature of man or that men must be brutalized to be combative. I believe in God, and I believe in human decency. But I firmly believe that any man's finest hour, the greatest fulfillment of all that he holds dear, is that moment when he has worked his heart out in a good cause and lies exhausted on the field of battle - victorious."

...Vince Lombardi

Vince Lombardi “What it Takes To Be Number 1”

1. Do you agree with Vincent Lombardi’s assertion that people are born with the desire to compete why or why not?

2. What areas do you see competition in the economy of the United States ?

3. How is competition beneficial to our economy/society?

4. How is it harmful to our economy/society?

Competition Article

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