Bell Work

1
Bell Work

• Have a short conversation with your tablemate
  about the following questions
• Why do people and nations trade with one another?
• Why do nations choose to specialize in the
  production of certain goods and services and not
  others?
• (think about bananas MN does not grow bananas.)

2
What is Economy?

• Economy is a way that society organizes to
  answer 4 basic questions -
• What to produce?
• How much to produce?
• How should we produce?
• Who should get it?
• Different countries/societies answer these
  questions in different ways

3
3 Types of Economies

• Traditional Economy - answers 4 questions based
  on habit or custom
• What we have always produced.
• As much as we will use ourselves.
• Use methods that have worked in the past.
• Keep what is made, or give it to someone else who
  has always deserved it.

As a table, decide how to best summarize each of
the three types of economy.

• Market Economy - answered by the law of supply
  and demand
• Whatever brings us a profit
• As much as we can sell to make a good profit.
• Invent new methods and products to sell more or
  to produce products more cheaply.
• Whoever will pay the most.

• Command Economy - 4 questions answered by a
  central authority
• A central authority will answer this question.
• A central authority will answer this question.
• A central authority will answer this question.
• A central authority will answer this question.

4
After watching the 3 clips

• Classify each of the following clips according to
  the type of economy each represents.

http//www.youtube.com/watch?v16SMpTXpuuY http//
www.youtube.com/watch?vzhWoqobDZXQ http//www.hul
u.com/watch/44577/the-simpsons-lemonade-stand
5
Additional Economic Vocab

• Gross Domestic Product (GDP) A final measure of
  all goods and services produced in a country in
  one year.

6
GDP Indicators

• Consumer Goods goods and services produced to
  satisfy households
• Investment Goods capital, investment inventory
  goods
• Government Goods goods and services produced by
  the government
• Imports and Exports goods that come in and exit
  a country

7
Application

• You will be using this vocabulary and looking for
  evidence of GDP indicators in the play the class
  will read.