Survey
* Your assessment is very important for improving the workof artificial intelligence, which forms the content of this project
* Your assessment is very important for improving the workof artificial intelligence, which forms the content of this project
Personal Economic Analysis The study of the roles people play in an economic system. Worker Citizen Consumer 1 Free Enterprise System Consumer Roles In the US & Global Economy 2 Who Wants to Buy? Write down several things that you have to buy this week Write down some things you would like to buy this month What is the difference? 3 Economics Today Economics Definition study of the process that involves choice making as people try to satisfy needs and wants 4 Economics Today Unintended Effects Things don’t always go as planned Do they matter? YES!! Think: Effects both intended and unintended 5 Economics Today Costs & Benefits Everything has a cost Opportunity (choices!) costs Examples?? 6 Opportunity Cost What is given up to do something different. Save my money or go on Vacation? 7 Economics Today What is Scarcity? (Needs) Wants --> utility Tangible (goods) vs Intangible (services) Unlimited resources wants - Limited 8 Economics Today Scarcity Cannot --->>> Choices have both choices Leads to ---------------------------->>> 9 Economics Today The Link Between SCARCITY, CHOICES, and OPPORTUNITY COSTS Scarcity Choices Opportunity Costs 10 Poll Everywhere Review from Day 1 If you have UNLIMITED texting… You can use Poll Everywhere 11 How To Vote via Texting 1. Standard texting rates only (worst case US $0.20) TIPS 2. We have no access to your phone number How To Vote via PollEv.com TIP Capitalization doesn’t matter, but spaces and spelling do How To Vote via PollEv.com/username TIP Capitalization doesn’t matter, but spaces and spelling do How To Vote via Twitter 1. Capitalization doesn’t matter, but spaces and spelling do TIPS 2. Since @poll is the first word, your followers will not receive thi Poll: Which of the following is not scarce? Poll: What happens to price when a good become... Poll: The study of the process that involves c... Poll: Pat says, "If I didn't go to the movie t... Poll: Which of the following can affect the he... Economics Today LAND LABOR CAPITAL ENTREPRENEURSHIP 22 Economics Today $$$$ (cost) for these resources Land --> Rent Labor --> Wages, Salaries Capital Entre --> Interest --> Profits 23 24 Hmm… Imports Exports Outsourcing Tariffs 25 Global Effects Does what’s happening in the rest of world effect the US? You Bet!! But How? 26 Global Economy Why is this international trade so important? Think about those things we would not have Think about what other countries wouldn’t have 27 Global Economy Have computers changed the way business is done? 28 Global Economy Which countries are the most economically stable? Why? 29 How Do We Measure Economic Growth? Personal Income Consumer Gross Price Index Domestic Product Inflation Unemployment Rate 30 Gross Domestic Product Consumer Spending + Government Spending + Business Investment +Foreign Trade =GDP •Total value of all final goods and services in an economy 31 GDP-Where do we count it? 32 What is Inflation? When Prices Increase A dollar cannot buy as much 33 Inflation What causes an increase in prices? Change in interest rates Surging economy 34 Inflation Effects Who is Helped by Inflation? Who is Hurt by Inflation? 35 A retired person who lives on fixed interest from bank certificates of deposit (CDs) 36 A family that bought a house and has a fixed interest rate mortgage 37 A retired teacher whose income comes from a fixed income pension? 38 A two income family. The wife is a medical doctor, and the husband is a financial analyst? 39 Government & the Economy 40 A NATION AT WORK HOW WELL ARE WE DOING? 41 EMPLOYMENT Labor Force Unemployment Underemployment Supply, Demand, Employment 42 Our Free Enterprise System The Business Cycle Recurrent swings (up and down) in real GDP Prosperity/Peak Recession/Contraction Recovery/Expansion Depression/Trough 43 Our Free Enterprise System The 45 40 35 30 25 20 15 10 5 0 Business Cycle prosperity prosperity recession recovery depression 1 2 3 years ---->> 4 5 6 7 8 9 10 11 12 44 Long-term GDP trend 45 Our Free Enterprise System What conditions would exist in an economy if there was: Prosperity/Peak prosperity Recession/Contraction Recovery/Expansion Depression/Trough 46 Economic Policies Supply & Demand 47 Supply & Demand Candy Auction! 48 Quantity Demanded The number of products a consumer is WILLING & ABLE to buy at a specific price. 49 Law of Demand Amount consumers are willing & able to buy at all prices As P D As P D 50 What changes Demand? The # of Buyers Real Price Income of Related Goods Price of Substitutes Fads & Fashion 51 Quantity Supplied The number of products a business is WILLING & ABLE to sell at a specific price. 52 Law of Supply Amount businesses are willing & able to produce at all prices As P S As P S 53 What changes Supply? # of Sellers (competition) Price of Factors of Production Price of Related Goods Price of Substitutes Government Natural Policy Disaster 54 So What’s the Point?! We want the perfect situation Equilibrium--the number demanded of a product equals the number of sold of a product. 55 Equilibrium P S D Q 56 What if it’s Not Perfect? Surplus When supply exceeds demand Shortage When demand exceeds supply 57 Surplus P S D Q 58 Shortage P S D Q 59 Price Elasticity of Demand Measure of the change in Demand as a result in the change of prices 60 Elastic vs. Inelastic Large change in demand w/ a change in price •Luxuries •Many substitutes 61 Elastic vs. Inelastic Little or no change in demand w/ a change in price •Necessities •not many substitutes 62 Economic System What type of economic system do we have here in the US? What other types of systems exist in the world? Market Command Traditional 63 Capitalistic Economy Element Profit of Market Economy Motive Standard of Living 64 Devilonia 7 Economic Goals Freedom Opportunity Efficiency Stability Growth Equity Security 65 Freedom consumers have a choice in the products and services they use. 66 Efficiency what is the best use for the available resources? 67 Growth where do we want to be economically years from now? 68 Security should our citizens be financially self reliant or should the government provide for them? 69 Opportunity Should our citizens make decisions based on their own experiences and they will find pleasure in? 70 Stability Is the value of our currency a concern of ours? 71 Equity Who should have the authority and how do we distribute power throughout our citizens? 72 Review Game Directions 1 Reader (Can also challenge) 1 Answer Sheet Holder 1 Question Picker 1 Challenger Each position rotates every question!! (Rotate clockwise) 73 Test Wednesday!! Bring Study a pencil your notes/handouts Bring something to do after the test Good Luck!!! 74