Economics
Supply and
Demand
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Agenda
If not done: Collect Gov. handout Econ Books
Homework: Read pages 26-47, answer
questions 2.1, 2.2, 2.4.
Americans Thrifty Ways Article
Political Cartoon
Supply and Demand
How Supply and Demand Impacts goods we buy!
Time for hwk and Project
Review
Objective: Describe the relationship between
supply and demand.
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Supply and Deman
Definitions
Scarcity:
Goods are insufficient to satisfy
people’s wants.
Production:
Conversion of resources into
products that can be consumed.
Goods:
All things people derive
satisfaction from.
Services:
Mental or physical labor
purchased by consumers.
Opportunity Cost:
Something sacrificed to obtain
something.
Goods Vs Economic
Goods
Goods
All things
you derive
happiness
From.
Similar
Economic Goods
Economic Goods derived from
Goods
scarce resources,
is a Subset Almost every example
is an econ-good, and
Of
services.
Goods
Scarcity, Choice, Opportunity
Scarcity
Cost
Because of limited resources
choices have too be made!
Choice
With every choice in picking
one good over another
an individual sacrifices
something.
Opportunity Cost
Is the cost for obtaining
another good that is
desired
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Questions
What are wants and needs?
-Wants is an individual’s
desires.
-Needs are different for each
person, what you need to
survive.
What is trade-offs?
To trade one resource for
another.
How do you make a PPC?
PPC - shows the maximum amount
of goods and services that can be
produced, for a given level of
technology and resources.
What
Review
is scarcity?
What is Opportunity
Cost?
What is a want and
need?
How do make a PPC?
Economics
Supply and
Demand
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Agenda
Homework: Article on Credit and
summary.
Check hwk/Review
Article/Cartoons on Bankruptcy
Now Statement
Credit Web Quest.
Projects
Review
Objective: To evaluate the uses of credit.
Now Statement
How
does credit play a
role in your life today?
Give examples!
Review
 What
is credit?
 What is in a credit report?
 Why do people want good
credit?
 How do you make a PPC?
Economics
Credit, and
Supply and
Demand
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Agenda
Homework: None.
Check and Review Credit Article
Supply and Demand, Banking, and Labor
Unions (Notes and Handout)
If Time: Projects
Review
Objective: To evaluate the uses of
Banking, Labor Unions, and to describe the
role of demand in the economy.
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The law of demand:
There is a negative, or
inverse, relationship
between the price of any
good or service and the
quantity demanded.
Relative price:
The price of one
commodity divided by the
price of another
commodity.
Demand Curve:
A graph of the demand
schedule. A negatively
sloped line showing the
relationship of price and
quantity.
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Supply:
Shows relationship
between price and
quantity supplied of a
good.
Law of Supply:
The higher price of a good
the more businesses will
increase their production
of it.
Supply Curve:
Graphic representation of
a supply curve. Line
showing the supply
schedule, which generally
slopes upward.
 Equilibrium:
 Situation
where quantity
supplied meets the
quantity demanded.
 Turn to page 73 of your
book and answer question
3-1 and find the
equilibrium of the amount
demanded and supplied.
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Banking
How does banking differ from nation to nation?
Some nations they are crucial in the economy,
while in others it is not.
Duties of the Central Bank:
Functions for the national gov, services to
private banks, and monetary policies.
What are the parts of the Fed Reserve System:
Board of Gov-set monetary policy, oversee Fed
Banks; Fed Reserve Banks-furnish currency,
handle national debt; Fed Open Market
Committee-Directs buying and selling of US
assets.
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Labor Unions
Labor Unions:
Worker organizations that seek economic
improvements for employees.
Goals of Unions:
Wage rate, rationing of jobs, improve working
conditions.
Strategies:
Limiting Entry, etc.
Benefits Vs Disadvantages:
Benefits-voice for workers, wages equal, etc.;
Disadvantages-profits go down, not necessary
the best person for the job, etc.
Review
 What
does the Law of demand
say?
 What does the Law of supply say?
 What is in the Federal Reserve
System?
 What are Labor Unions?
Economics
Credit, and
Supply and
Demand
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Agenda
Review Supply and Demand Chart
Handout on Monetary Policy, Fiscal Policy,
and Taxes
Ten Principles of Economics Click Here
If Time: Work on Mock Election Projects
Review
Hwk: Quiz tomorrow (not online) /Project
due Monday by the end of class.
Monetary Policy
Transaction Demand:
 Holding money to use in transactions.
 Precautionary Demand:
 Holding money to meet unplanned
expenditures.
 Asset Demand:
 Holding Money as a store of value.
 Negative aspect of Holding $?
 Value decreases!
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Monetary Policy
Discount
Rate
Open Market
1.Fed
increases
Reserve
Operations
rate
of
banks
Requirements
1.If fed
that
borrow
1.Fed
increase
Increases the #
money
from
it,
reserve
require.
of bonds then
then
they
are
then
less
$
supply of
Less
likely
to
in
circulation.
$ increases.
Borrow.
Taxes
Payments to the government.
 Taxes:
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 Payroll
Taxes:
 Provide essential funding for
programs.
 Three options:
 Raising Taxes, Wage Cap, Cutting
Benefits.
 Which is the best choice?
Fiscal Policy
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Fiscal Policy:
Changes in governmental expenditures to
positively impact the government.
Direct Expenditure Offsets:
Actions taken by the private sector to offset
government spending.
Supply-side Economics:
Creating incentives for individuals and firms to
increase production.
Review
 What
are negative aspects of holding
money?
 How is monetary policy determined?
 What are the three options for paying
for governmental expenditures?
 What is supply-side economics?
Agenda
Homework: None.
 Study for Quiz-Look over Econ
Notes/worksheets-terms (Labor
Unions, Law of Supply, Law of
Demand, Credit, Fiscal Policy, etc.)
 Quiz
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 After
 Note
Quiz finish project
cards-name handed in Monday
 PPT on Summer-Drive needs to be done
Agenda
 Homework:
None.
 Check Projects/Collect NoteCards
 Review Quiz
 Investment Options Article
 Presidents of the US
 Electoral College
 If Time: Mock Election
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Agenda
Homework: None.
The Political Parties of America Webquest
 Use
computers to fill out information
 Take Test http://www.politicalcompass.org/test
 Review Click Here
Parties and Issues
 If Time: Mock Election
 Review
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Agenda
 Homework:
Final Tomorrow
take folders
 Mock
Election
 Final Review Game Click
Here
 If Time: You Be the Judge
 Review
Agenda
 Winner
of Mock Election?
 Study for Exam
 Final Exam
After Exam read:
Supreme
Court
Article/Summary
You Be the Judge