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1. Which is a way that entrepreneurs help increase a country’s GDP?
a. writing laws to protect personal property
b. creating businesses that give people jobs
c. providing the ideas to start and expand businesses
d. working to increase the amount of goods and services bought by a country
3.
a.
b.
c.
d.
The Soviet Union did not invest in capital improvements, so Russia workers today
Do not want to increase their standard of living
Are not as productive as workers in other countries
Work in brand new factories and are very productive
Have shut down their factories until new ones are built
4. Which is a way that entrepreneurs help increase a country’s GDP?
a. writing laws to protect personal property
b. creating businesses that give people jobs
c. providing the ideas to start and expand businesses
d. working to increase the amount of goods and services bought by a country
5. All of the following are benefits to members of the European Union EXCEPT:
a. free trade
b. single currency
c. workers can work in many other countries
d. increased number of television stations
1. A sixth-grade class decides to open a lemonade stand. The stand and
the lemon juicer are examples of which factor of production?
a. natural resources
b. human resources
c. capital resources
d. entrepreneurship
2. What would be the human resources for the lemonade stand?
3. What would be the natural resources used to operate the lemonade
stand?
What Is an Economy?
• The process or system by which goods and
services are produced, sold, and bought in a
country or region
3 types of economies
that ask these
questions:
- What to produce
- How to produce
- For whom to
produce
Traditional Economy
-This system is found in
agricultural societies where
people live the same way
there grandparents and
parents did.
-They produce what they
need to survive by farming
and hunting.
-They make their own
clothing and tools.
- Found in Africa , Asia and
some parts of South
America
- Products are exchanged
by bartering
Traditional Economy
CHECKPOINT!!
In a traditional
economy…….
How do they determine
what to produce?
How do they produce it?
For who??
Command Economy
- The government controls
what is produced and how it
is produced.
- The government owns all the
resources and decides who
gets the products
- The decision might be based
on class, reward, or simply
waiting in line.
- Ex: North Korea
- Found in Communist
governments
Market Economy
-In a market system, a
country’s economic decisions
are based on what its people
what to buy and sell.
- People can start businesses
and produce what they
want!
- Supply and demand
determines what to
produce!
- Who gets the product is
based on who can afford it
Most Countries Are Mixed Economies
• A mixed economy is an economy that is a mixture between a
pure market economy and command economy.
• There are some government owned resources such as schools
public colleges, postal service.
Mixed Economy
Russia 54%
Pure
Command
Germany
74%
United
Kingdom
76%
Pure
Market
United Kingdom!
• The UK has a mixed market
economy that ranks as the 2nd
largest economy in the EU
• Service industries ( teaching,
accountant, banking, police)
account for most of the UK’s
earnings
• The British government has
turned over state-own
companies to private
ownership.
• Free market competition (
business owners decide what
goods they will produce)
Germany!
• Mixed economy known
as a social market
economy
3 things:
-(Market system) Free
enterprise and
competition
- Some government
control
- Social welfare ( help to
the poor)
Russia
• Russia has a mixed market
economy.
• It used to command when it
was controlled by the Soviet
Union, not it is market
• Many government –owned
companies are being sold to
private companies
• Russia still faces financial
problems and hug costs to
enhance its economy.
• Russia is not part of the EU and
does not use the Euro. They
used the ruble
Imports vs Exports
• Import is when goods or services are brought
into a country from abroad ( toys made in
China are imported into America)
• Export is sending goods or services to another
country for sale.
TRADE
• Countries sometimes set up trade barriers to
restrict trade because they want to sell their
own goods to their people. They don’t want
foreign competition to come with lower
prices! Almost every country has some
restrictions on foreign imports
Types of Trade Barriers
Tariffs are taxes placed on imported goods.
Tariffs cause the consumer to pay higher prices
for an imported item, decreasing the demand
for the lower cost item produce domestically
Quotas are restrictions on the amount of a good
that can be imported into a country
Embargoes forbid trade with another country
Trade in the European Union
• The European Union (EU) was primarily
established to set up free trade amongst
European countries. Members can trade freely
without tariffs. This helps them save money.
• EU also established quotas on trade with
other nations. They placed Quotas on clothes
from China , so countries with textile
industries could prosper.
Reasons to set Trade Restrictions
• Safety
• Political reasons
• Financial
Standard
• SS6E7.a
Explain the relationship between investment
in human capital (education and training) and
gross domestic product (GDP)
Economic Growth
• Discussion:
What are ways countries can make
there economy strong?
GDP
• There are basic factors that influence economic
growth:
- Human capital
- Capital
- Natural resources
- Entrepreneurship
A country’s economic performance is measured by
GDP( Gross Domestic Product)
.
GDP!!!
• The GDP is the total market
value of the goods and
services produced by a
country’s economy
• They use it to determine the
health of a country’s
economy.
•
Since Germany and the
United Kingdom have strong
economies in Europe, they
also have high GDP’s
You can think of it as the size of the
economy
Human Capital
• Human capital (
people)
-Skills, Education
When a country invests
in human capital it
improves their GDP.
Education creates a
smarter workforce,
leading to economic
growth
Capital
• There is a relationship
between investment in
human capital and GDP.
Capital is factories, machinery,
and technology.
Companies building new
factories or computers helps
economic growth by providing
workers with the best and
newest tools, making them
more productive!!
Natural Resources
• One reason countries have successful
economies is because they have many natural
resources. Natural resources play a very
important role. They are the fuel for energy
and the source of income when exported to
other countries.
Natural Resources
• Russia has natural resources like oil and
natural gas.
• They are located in remote areas and are
difficult and expensive to access.
Entrepreneur
• Entrepreneur is someone who starts a
business. Entrepreneurs play a big role in any
country’s economy. They come up with new
ideas and use human capital, and natural
resources to bring their ideas to the
marketplace. They take several risks.
CAREER DAY
Tell me about your career day experience
- What occupations did you hear from?
- What was interesting about those careers?
- What was the highlight of today’s events?
- What do you aspire to be and why?
Include sufficient details
Needs to be written in paragraphs, not bullet points