Possible production techniques
Resource Resource Method
prices
#1
Method
#2
Method
#3
Land
$4
2
4
2
Labor $3
1
2
4
Capital
$3
5
2
3
Entrepreneurship
$2
3
1
1
Small group discussion
► According
to Adam Smith, how does selfinterest benefit the economy as a whole?
Graphing activity
► Draw
a basic supply and demand graph for
candy from M&M Mars.
► Label P,Q, S1,D1, EP1, and EQ1.
► Show what will happen to the graph when
the company receives a subsidy for using
methane from the landfill to power their
machinery.
► Indicate changes to P and Q.
Discussion
► Reconstruct
the circular flow model with
government added into the model.
► Indicate which parts of the model are
affected when MISD uses money raised
from a bond election to expand the high
school in order to add more science classes.
Terms/concepts to study
► Capital
goods v. consumer goods
(examples)
► The invisible hand
► Normal v. economic profits
► Property rights (what is included)
► Roundabout production
► Specialization
► Barter and the coincidence of wants
continued
► Main
sources of tax revenue for the federal
government
► Public goods v. private goods
► Three major forms of business organizations
(percentages, advantages and disadvantages)
► Externalities (spillover costs and benefits)
► Fiscal federalism
► Transfer payments
► Distribution of income
► Vertical integration (of firms)