1.
2.
3.
4.
5.
6.
7.
8.
Economics
need
want
law of scarcity
producer
consumer
factors of production
supply
9. demand
10. law of supply
11. law of demand
12. price
13. equilibrium point
14. surplus
15. shortage
16. Economic interdependence
17. Opportunity Cost
18. Recession
19. Depression
20. Gross National Product(GNP)
1.
2.
3.
4.
5.
6.
7.
Economics
need
want
law of scarcity
producer
Consumer
Opportunity Cost
8. Command Economy- An economy
where interactions between producers
and consumers are controlled by gov’t
9. Market- An economy where producers
make what consumers want without
government interference
10. Traditional-an economy with limited
interactions because of agricultural selfsufficiency, which often includes
bartering.
What is “The Economy”
The Economy is all the interactions
between Producers and Consumers
Producer: Those who make or manufacture goods
or services to sell.
Consumer
A person who buys or rents goods or services.
1.
law of scarcity-All things are limited
2. Opportunity Cost-In order to get something, you must
give something else up
Government Interference in free market
How:
Why:
Taxes
Tariff(import)
Laws
Price Ceiling
Price floor
Patents
Protection of People’s
•Health
•Environment
•jobs
•inventions
•American Products
*Raise money
More
Less
Capitalism
(Free
Market)
Mixed
Communism
(Command
Economy)
Reading 5: Three Main Types of
Economies pg. 471
What are the 3 economic systems according
to the reading?
What 2 economies are the most common?
What is the difference between a command
and a market?
What type of economy do you think the U.S.
has? Explain.
Bellwork
Open notebooks and date 12/13
Copy down the following questions in your
notes, skipping a line between each.
1. What are the two main types of
economies? Command(Communism)
and Free Market(Capitalism)
2. What is the difference between them?
Economic decisions are made by the
government vs. the free interaction
between producers and consumers.
Reading 4 p. 469
What do we have to work with?
What is Land?
What is Labor?
What is Capital?
What is Management?
BackEast Printing and Design
Factors of Producton
Land
Labor
Capital
Management
Bellwork:
Hardest DQ of the year
1. Edgar rents a kiosk(one of those annoying little stands
in the middle of the mall) in the King of Prussia mall at a
cost of 2500.00/month to sell miniature remote control
helicopters. He has a part time staff of 2 high school kids
that each work 20 hrs/week at 8 dollars/hour. If he can
sell each helicopter for 50 dollars, how many will he have
to sell to break even for the month of December?
2. If he is able to break even is this business a good
decision? Why or why not?
Supply
The amount of a good or service
available at a particular price
Law of Supply
As prices go up, producers are willing
to produce more, as prices go down,
they produce less
Demand
The ability and willingness of people
to buy something.
Law of Demand
As prices go up, people demand less.
As prices go down, people demand
more.
Agenda
1. DQ Talk
2. Key Terms
3. Supply/Demand graphs & Equilibrium
Point(price)
4. Creating your own graph
Supply and Demand
Price
Quantity
Working with Supply/Demand
Use the supply/demand schedule to create a graph and
plot both the supply and demand curve. Be sure to label
both curves as well as the X and Y axis. In addition label
the equilibrium point on the graph. The approximate
equilibrium price of Little toy helicopters is
______________.
Supply/Demand Schedule
For Little Toy Helicopters
Price
$60
$40
$20
$10
$5
Quantity
Supplied
150
120
80
20
10
Quantity
Demanded
20
40
80
100
200