 How
much people want to purchase of a
good given its price
 Law
of demand= as price goes down,
quantity demanded goes up
 How
many goods are available for
purchase at a given price
 Law
of supply: as price goes up, more
goods will be supplied
 Equilibrium-
The price and quantity at
which supply and demand are equal
 Shortage-
when demand is greater than
supply
 Surplus-
demand
when supply is greater than
 www.youtube.com/watch?v=Ng3XHPdex
NM
IN SUPPLY





Productivity
Technology
Subsidies
Weather
Taxes
IN DEMAND





Changes in taste and
preference
Changes in income
Changes in expectations
Changes in the prices of
related goods
Population size and
composition
 According
to the law of supply and
demand, what causes prices to rise?
What causes prices to fall? Think about
this concept related to the supply of
workers in an economy. What is the
“price” for a worker? What will happen if
there is a shortage of workers? What will
happen if there is a surplus of workers?














A. Air Transportation
B. Real Estate
C. Detective and Protective Services
D. Legal Services
E. Advertising
F. Optometry
G. Construction
H. Colleges and Universities
J. Trucking
K. Banking
L. Dentistry
M. Accounting, Auditing & Bookkeeping
N. Plumbing and Heating
O. Electrical Repair
 Money
received for work or investments
 Investment-
expense of money with the
expectation of getting a profit later
 Society
needs it
 There is a short supply or large demand
 It is more difficult to get the necessary
skills







the level of education, training, and experience
that is required to do a particular job
the level of demand that exists for the type of
labor you are skilled/trained/educated to
provide
the number of others who have similar or better
skills who can compete for the job
how good you are at what you do
how long you have been working — your
experience, your seniority
your work habits, reliability
the state of the economy
 High
School Diploma- $1.3 million
 Some college- $1.55 million
 Bachelor’s Degree- $2.27 million
 Master’s Degree- $2.67 million
 Doctoral Degree- $3.25 million
 Professional Degree- $3.65 million
 Average
lifetime earnings
Source: www.bls.gov: Employment statistics of the civilian population 25 years and over by educational attainment.
Comfortable
Comfortable
What actions can you take to improve your ability and skill in areas you find difficult?
What is your plan of action, your timeline, for improvement?
Annual
Income
H.S.
Dropout
H.S.
Diploma
Associate’s
Degree
Bachelor’s
Degree
Advanced
Degree
$19,226
$28,950
$36,395
$51,568
$67,073
Calculate the difference in salary between:

A high school dropout and a high school graduate.

A high school graduate and a graduate from a twoyear college program (associate’s degree).

A two-year college graduate and a four-year college
graduate (bachelor’s degree).

A four year college graduate and an individual with
an advanced degree (master’s or doctorate).
A. The high school dropout begins full-time work at age 16.
B. The high school graduate begins full-time work at age 18.
C. The graduate of the two-year college begins full-time work at age 20.
D. The graduate of the four-year college begins full-time work at age 22.
E. The graduate with a master’s degree begins full-time work at age 24.
Annual Income
Years Worked
Life Earnings
H.S. Dropout
H.S. Diploma
Associate’s
Degree
Bachelor’s
Degree
Advanced
Degree
$19,226
$28,950
$36,395
$51,568
$67,073


summarize what you have learned about careers
and income.
Using the internet find 3 occupations that you are
interested in and describe the yearly income,
experience and schooling needed for each job.
(SITE SOURCES)

Conclude with your educational goals and how
they will influence your income.

MUST BE TYPED AND BE AT LEAST TWO PAGES
IN LENGTH DOUBLE SPACED.
 Imagine
for a while that the world has to
start all over. Nothing exists but water, land,
trees, animals, and fifty people whose ages
range from 10 to 50.
 Trying
to restart the world, your group of 50
has put you in charge of selecting the seven
most necessary occupations.
 No
training is necessary, List the seven
occupations and the reasons why you would
select them.
A
person who organizes, manages, and
assumes the risks of a business or
enterprise.
 RISKS
• No guarantees
 REWARDS
• Be your own
• No regular
paycheck
• No boss
• Long hours
• Assume debt of
business
•
•
•
•
boss
Keep profits
Control
Satisfaction
Pursue talent
and creativity
 Willing
to take risks
 A person who creates a
business from scratch.
 Self employed
 Strong sense of
discipline
 Be your own boss
 Beat the competition
 Walt
Disney
 Oprah Winfrey
 Donald Trump
 Your
name
 Contact Information- definitely email and
phone, address is optional
 Objective-
what you hope to accomplish
with your job search
 Prior
Experience- List the title, when you
worked there, and specific
accomplishments while there
 Education-
list where you went to school,
during what years, and the degree you
earned (or anticipated graduation date)
 Skills/Accomplishments-
any other
bragging rights that might help you with
the job you are applying for
 Should
look professional
 Put dates in chronological order
 Can have heading, but should not have
borders
 Simple, easy-to-read font
 Text should not be too large or too small
 Use normal size paper in a neutral color
 Write
and Type a Resume as though you
were applying for one of the three jobs
you chose.
 MUST
 DUE
BE TYPED
OCT 1
 Wages
(a fixed regular
payment by an employer to an
employee) and
Salaries/Allowances
 Investment Income
 Self-employment
 Inheritance
 Gifts
 Awards
 Lottery!
Employee
benefits –
• The additional services offered and
paid in part by employers.
• Ex. Insurance- a guarantee of
compensation for loss or
damage.
 Paid Vacation
Holidays (Personal
Leave)
 Paid Sick Days (Sick Leave)
 Health Insurance
 Disability Income Insurance
 Life Insurance
 Dental/Vision Insurance
 Profit Sharing
 Payroll Savings Plan
 Stock Option Purchase
 Registered Pension Plan- payment





made during retirement
Retirement (leaving a job)
Tuition Reimbursement
Travel Expenses
Spouse Benefits
Access to Financial Advice
 Consumer Prices
 Consumer Spending
 Interest Rates
The average cost of the necessities
of life in a given area
 Geographic
area
• Coastal areas tend to be more expensive than
inland
 Proximity
to needs (water, food, fuel)
• The farther away from goods and services, the
more they cost
 How
many people live in an area
• Urban areas tend to be more expensive than
rural areas

Taxes are required contributions to state
revenue, levied by the government on
personal income and business profits or
added to the cost of some goods,
services, and transactions.
• Cooking Oil, Foreigners,
Slaves (Ancient Egypt)
• Sales, Inheritance, Imports,
Exports (Ancient Rome)
• Beards, Beehives, Boots,
Souls (Russia, 1702)
• Bachelors (England,
1695; Missouri, 1820)
 Property
 Sales
tax
tax
 Gasoline tax
 Local/City taxes
Health Care for
Elderly
National
Defense
Social Services
State and
Local
Police
Public Education
Financial
Aid
Social Security, Medicare,
and Unemployment and other
Retirement Taxes
35%
Personal
Income Taxes
43%
Excise, Customs,
Estate, Gift, and
Miscellaneous
Taxes
7%
Borrowing to
Cover Deficit 8%
Corporate
Income Taxes
7%
Social Security, Medicare, and
other Retirement
38%
Law
Enforcement and
General
Government
3%
National Defense,
Veterans, and
Foreign Affairs
20%
Social Programs
21%
Physical, Human, and
Community
Development
10%
Net Interest on
the Debt
8%










Bridges
Road maintenance
Research
Education
Armed services, national defense, veterans, and
foreign affairs
Retirement income for elderly
Social programs
Physical, human, and community development
Law enforcement
Interest on the national debt
The Social Security tax is
also called the FICA tax.
(Federal Insurance Contributions Act)
Social Security taxes
provide the following
benefits for employees
and their dependents:
• retirement benefits
• benefits for the dependents of
retired workers
• benefits for the disabled and their
dependents
 The
Medicare tax is used to provide
medical benefits for certain individuals
when they reach age 65. Workers, retired
workers, and the spouses of workers and
retired workers are eligible to receive
Medicare benefits upon reaching age 65.
Each person is responsible
for
filing a tax return.
• Tax Evasion: Failure to pay legally due taxes
• Tax Avoidance: Legal means of decreasing
your tax bill
• Information on taxpayer returns is private
• Taxpayers have the right to appeal an
IRS decision
Al Capone
 Gross
income is the total amount a
worker is paid before any required or
voluntary deductions are made.
 Net income, also called “take home
pay,” is the amount a person receives
when he cashes or deposits his check.
It is the remaining amount after
deductions are made.
Gross Income
- Deductions
Net Income
 By
law, employers must pay taxes
deducted from employee paychecks.
The most common taxes are federal and
state, and sometimes cities have their
own local taxes. In addition, employees
have to pay a Social Security Tax (FICA),
and Medicare tax contribution with each
paycheck.
 Health
Insurance
 Retirement Savings
 Union Dues
 Charitable Contributions

Figure the sales tax in the following
scenarios. On a piece of scratch paper,
write your answers AND explain why it
is critical to include tax when planning
your budget and spending.
If a CD costs $15.00 and the tax is
7.5%, what is the final cost?
You and your friends receive a lunch bill
for $22.50 before tax is included. The
tax in your state is 8%. What is the total
cost when the tax is included?
Which would cost more…a pair of earrings
priced at $28.00 with a 7% tax, or a set
of posters at $29.00 with a 5.5% tax?
The class trip is going to cost each of the
fifty students $130.00. If tax is 5%, what
is the total cost for the entire class?
 Federal Tax
• W-4
• I-9
• W-2
• 1040EZ
• Utah State Tax Form
– TC-40

You use W-4 Employee's Withholding Allowance
Certificate Form to establish your withholding
allowances for Federal income taxes.
 Line
5 is where you write your
withholding allowances.
 Usually a number between 0 and 7.
Lower #
Higher #
=
=
more $
less $
withheld
withheld
 An
I-9 Form is the Employment Eligibility
Verification Form required by the Immigration
and Naturalization Services (INS) to verify your
identity and your eligibility to work.
 All employees must complete this form and
provide valid original identifications.
 You are not eligible for pay until Payroll
Services receives a satisfactory I-9.


Form W-2 reflects all taxable wages you received
during the calendar year and all taxes withheld
from those wages.
The form serves as an annual report that enables
you to file your personal income tax return with the
Internal Revenue Service.
Similar to the 1040
income tax form,
1040EZ is a faster
and easier way to file
your taxes. This form
is only eligible for
people with income
less than $50,000 and
interest income of
$400 or less.
7.65% for the first $113,700 of wages
 1.45% for wages about that

 How
much would you pay in FICA taxes if
you made $67,000?
 How much would you pay in FICA taxes if
you made $125,000?
 $67,000
(.0765)= $5,125.25
 $113,700
(.0765)= $8698.05
 $11,300 (.0145)= $163.85
 $8698.05+$163.85=$8861.90
1.
2.
3.
4.
5.
Determine gross income
Determine the number of exemptions
and deductions
Find the net income
Discover which tax brackets are
covered
Determine how much is taxed at each
level (bracket) and add together for
total
 Only
taxed on the “net” amount.
 Gross
is what they pay you, net is the
gross pay minus exemptions and
deductions.
 Exemption: $3,900
per person
 Standard deductions $6,100 (single),
$8,950 (head of household), $12,200
(married filing jointly)
1.
2.
3.
Phil gets paid $85,000 a year at his job.
Amanda makes $10/hour, works 40
hours a week, 52 weeks of the year.
Jesse gets $62,500 annually from job
and then also makes $1500 on interest
from a savings account.
 What
is the net (taxable) income of a
single person who makes $26,600 and
takes the standard deduction and one
exemption?
 $26,600-$6,100-$3,900=$16,600
 What
is the net taxable income of
someone who makes $52,600 annually
and takes the standard deduction and
one exemption?
 What
is the net taxable income of a
person who makes $74,000 annually,
taking the standard decuction, is head of
household and taking exemptions for
himself and his three children?
 Zeke
makes $54,000 a year. He is single
and wants to take the standard deduction
and one exemption. How much will he be
taxed?
1. Find the net income: $54,000-$6,100$3,900= $44,000
2. Find the tax bracket(s) he falls under:
10%, 15%, 25%
3. Find out how much is taxed at each level:
• First $8,925 @ 10%= $892.50
• Next ($36,250-$8,925) @ 15%= $4,098.75
• Last ($44,000-$36,250) @ 25%= $1,937.50
4. Why do we subtract? Because the money we
subtract has already been taxed at a lower rate.
5. Total $892.50+$4,098.75+$1,937.50=$6,928.75
 Alice
makes $90,500 annually, is head of
household, and has two children. She
wants exemptions for herself and her
children and plans to take a deduction of
$10,500. How much will she be taxed?