Warm-up- Honors Journal Activity

1. What are the 4 factors of production used to make goods and services?

2. How does the interaction of supply and demand determine the price of a good or service?

And have out your wkst on Supply and Demand to be checked

Check HomeworkTrue False

___ ___ 1. Money is needed to produce capital resources.

___ ___ 2. A person who starts a new business is called an entrepreneur.

___ ___ 3. The physical and mental efforts of the people are called natural resources.

___ ___ 4. The 4 factors of production are natural, capital, consumption and entrepreneurs.

___ ___ 5. Water is a natural resource.

___ ___ 6. Incentives attempt to change economic behavior

___ ___ 7. A machine is a labor resource.

___ ___ 8. Supply is what people want to buy at certain prices.

___ ___ 9. The amount of money exchanged for a good is called service.

___ ___ 10. Demand is the desire, willingness and ability to buy a good or service.

___ ___ 11. The factors of production are the resources necessary to produce goods and services.

___ ___ 12. If products A and B are similar, but product B is cheaper, consumers will buy more of product A.

Circle the statement that is true:

13. You go to the store to buy apples for a pie. You need 6 apples, but the store only has three left.

Supply is high Demand is low Supply is low

14. A movie theater holds 200 people. There are 300 people in line to buy tickets.

Demand is high Supply is high Demand is low

For the questions # refer to the “Cuddle Pets” graphing activity on the other side.

15. How does an increase in the price affect the supply of Cuddle Pets? _____________________________

16. The demand for Cuddle Pets will increase if _______________________________________________

17. At what point will the supply of Cuddle Pets meet the demand in quantity? _________ In price? ______

18. According to the graph, how the amount of supply and demand for the Cuddle Pets will be based on the ___________

have out your wkst to be grade

d

Economic Systems Objectives

Describe 4 different types of economies and determine which type the US has.

Language• Students will understand

the content through learning new vocabulary reading and notes to successfully complete an exit ticket.

Content

New Vocabulary Lesson #3Page 204

Market

• Place where goods and services are bought and sold

PROFIT

• Money businesses receive for its product or service after their cost

Traditional Economy

Economic system where the decisions of what, how and for whom to produce are based on customs or habit

Command Economy

Type of economic system where major economic decisions are made by the government

Free (market) Economy

Economic System in which individuals and businesses are allowed to compete for profit with little government involvement

Mixed Economy

Economic system combining characteristics of more than one type of economy

Competition

Struggle between buyers and sellers to get the best products at the lowest prices

Private Property Rights

Freedom to own and use property as long as it does not interfere with the rights of others

Consumer sovereignty

Role of the consumer as the ruler of the marketplace determining what products will be produced

Lesson 3- Economic Systems

[page 217]

Essential Questions

1.Describe the 4 types of economic systems.

2.Identify which system the US has and why.

Economic systems is about how a country decides to use its limited productive

resources by answering the 3 basic questions-…decide the ownership of resources…

…and structure markets for the distribution of goods and services.

Notes

1.Every country needs to answer the 3 basic questions about their economy-

What to produce?

How to produce?

For whom to produce?

2.How will a country decide?

based on its limited productive resources

how much government involvement

try not to rely on just their own markets to deal with scarcity

History of Economic Systems

?- current Traditional Economies

1800’s Capitalism Big Business

Owners

1700-current

Mixed Economy

TRADITIONAL ECONOMY

Based on customs and traditions

People perform the same work as their ancestors regardless of potential or ability

Who owns the Factors of Production?

Who makes the decisions in the marketplace?

Countries that use this system today.

 people but there are few

resources available

 people  poorer, developing countries Examples

Free Market Economy Can own private

property and resources to earn profits

Competition encouraged

Individuals make the choices= Consumer sovereignty

No gov’t involvement*****

Who owns the Factors of Production?

Who makes the decisions in the marketplace?

Countries that use this system today.

 people – business owners

 people- consumers

 no oneExamples

COMMAND ECONOMY

Centrally planned economy by the gov’t

Property and resources owned by the gov’t

Lack of consumer choice

•

Who owns the Factors of Production?

Who makes the decisions in the marketplace?

Countries that use this system today.

 govt govt  communist nations

Examples

“Communism”

MIXED ECONOMY

private sector- People make decisions (free market)

public sector-Gov’t owns some resources and makes decisions (command economy)

Govt role is greater than in free market but less than in command economy

Who owns the Factors of Production?

Who makes the decisions in the marketplace?

Countries that use this system today.

People &  govt People & govt Most countries today

Examples

CHARACTERISTICS OF THE U.S ECONOMY

Notes

FREE MARKETS-

• Little gov’t involvement

• interaction of supply and demand determines prices

Notes

CONSUMER SOVEREIGNTY-

• consumer choices rule the market

Notes

COMPETITON-

• rivalry between sellers of a good or service

• results in better quality goods at lower prices

Notes

PRIVATE PROPERTY RIGHTS-

people can own property and its factors of production

Notes

PROFIT-

Individuals and businesses keep all earnings

Vocabulary Check- (practice)

• Get out your journal

Conclusion

1. Write a 2-3 sentence summary

2. Homework- read and highlight pages 208-209 “Lesson 3- Economic Systems” and answer questions 4-8.

3. Get ready for the Economic Quiz #1 NOW.

Reading [page 208-209]

• Reading page 161

Which type of economy is the government in complete control? ____________________________

Which type of economy has some government involvement but is primarily allows the markets to

operate freely? _________________________________________________________________

Explain a traditional economy. ____________________________________________________

List the characteristics of a free market economy.

What type of economy does the United States have and why?

STORY TIME!

• What type of economic system is used in this story?

• What characteristics of the marketplace that helped to make your decision?

Click the mouse button or press theSpace Bar to display the answer.

TRADITIONAL ECONOMIES

• Decision making based on customs and traditions

FREE MARKET ECONOMIES

• decision making by individuals and businesses

COMMAND ECONOMIES

• Central planning by the government