Download Unit 6 - civicscchs

Unit 6
Topic 1: Basic Economics
Topic 2: American Economy
Topic 3: Supply and Demand
Topic 4: Businesses and Labor
Topic 5: Investment
Topic 1: Basic Economics
I.
Economics
Def:
A. Choices (Goods & Services)
1. Wants
2. Needs
Good:
Service:
B. Why
1. Limited Resources
2. Unlimited Wants
3. Scarcity
C. Rewards & Consequences
1. Immediate Gratification
-Example:
2. Trade-off
3. Opportunity Cost
II. Producers & Consumers
A. Producers
1. Questions
- What
- How
- How Much
- For Whom
2. Factors of Production (PRODUCTIVITY)
- Land, Natural Resources, Renew?
- Labor, wage, salary
- Capital
- Entrepreneurship
B. Consumer
1. Resources, Wants, Needs
2. Cost/Benefit
III. Circular Flow of Economic Activity Model
1. Consumer Sector/Factor Markets
2. Business Sector/Product Markets
3. Government Sector
4. Foreign Sector
Topic 2: American Economy
I. Capitalism
A. Also Known As:
B. Characteristics
1. Private Owners, Private Property Rights
2. Government Owners
3. Supply v. Demand, Competition
4. Freedom, No Gov’t Interference
5. Profit Motive
6. Consumer Sovereignty
7. Voluntary Exchange
8. Laissez-Faire
C. Founders
1. Adam Smith “The Wealth of Nations”
2. John Keynes
II. How do we measure our economy?
A. Gross Domestic Product
1. Uses
-Wealth
-Standard of Living
-National Debt
B. Comparisons
1. U.S. v. Canada
2. U.S. v. China
3. U.S. v. Mexico
III. Other Types of Economies
A. Traditional
B. Command
1. Communism
-Karl Marx
2. Socialism
3. Example:
C. Market
D. Mixed
IV. Current Events that Impact Economy
A. Security Issues
1. Operation Iraqi Freedom
2. Homeland Security
3. Patriot Act
B. Downsizing in Companies
1. Out-sourcing
2. NC Furniture/Textiles
C. Globalization
1. Economic Interdependence
D. Movement of Capital
1. Migration
-Population Shifts
-Examples
2. Immigration
-Shifts
3. Products to Service
E. Specialized Areas
1. Silicone Valley
2. Sun Belt
3. Rust Belt
4. Research Triangle Park
Topic 3: Supply & Demand
I. Demand
A. Individual v. Market
B. Law of Demand
C. Measurement
1. Schedule
2. Curve
D. Movement of Resources
1. Population;Labor
2. Products
3. Substitute
4. Complimentary
II. Supply
A. Law of Supply
B. Measurement
A. Schedule
B. Curve
Supply & Demand Competing Together
A. Outcome
1. Surplus
2. Shortage
3. Equilibrium Price
4. Price Controls
Topic 4: Businesses & Labor
I. Types
A. Sole Proprietorship
1. Needs
2. Good:
3. Bad:
B. Partnership
1. Good:
2. Bad:
C. Corporation
1. Cooperative
D. Franchise
1. Examples:
II. Worker Issues
1. Labor Unions
-Labor, Craft, Industrial
2. Better Working Conditions
-Collective Bargaining
-Mediation, Arbitration
-Strike
3.Types
-Blue Collar v. White Collar
-Unskilled v. Skilled
III. Government Involvement & Regulation
A. 1930-40s
1. Social Security Act of 1935
2. National Labor Relations Act of 1935
3. Fair Labor Standards Act of 1938
4. Taft Hartley Act
5. Anti-Trust Laws
B. Other
1. Minimum Wage, Price Controls,
IV. Organization
A. Combining
1. Monopoly, Oligopoly
2. Horizontal Merger, Vertical Merger
3. Conglomerates & MNC
B. Increase Productivity (output v. input)
1. Specialization
2. Division of Labor (Assembly Line)
3. Investment in Human Capital
4. Mass Production/Factories
5. Robotics
6. Inventions
7. Education & Training
V. International Trade
A. Global Interdependence
1. Protectionism
2. Trade Agreement
3. Favorable/Unfavorable Trade
4. Exchange Rate
5. Free Trade
6. Comparative Advantage
7. Embargo/Sanction
B. Benefits
VI. Economic Interdependence
Topic 5: Investment
I.
Investment
A. Individuals
1. Stocks
2. Dividend
3. Bond
4. Mutual Fund & Pension Funds
5. Insurance Types
6. Capital investment
B. Government
1. Foreign relations
2.
C. Businesses
1. Capital
2. Workers
II. Consumer Rights
A. Information
B. Safety
C. Choice in spending $ (Consumer Sovereignty)
D. Consumer Bill of Rights Page 540
III. Consumer Responsibility
A. Shopping
1. Comparison
2. Report Faulty Products
3. Fair Complaints
4. Don’t Impulse Buy
5. Beware of Advertising
B. Credit
1. Sparingly
2. Loans