Economics

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Economics

• Tracy Hendrickson
• 2006

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Objectives

• Students will be able to explain the differences
  and connections between saving and financial
  investment.
• Students will be able to explain supply and
  demand and how it effects businesses.
• Students will be able to interpret past, explain
  present, and predict future consequences of
  economic decisions.
• Student will be able to explain the difference
  between private and public goods and services.
• Students will be able to explain how decisions of
  households, businesses and governments affect on
  another.

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Economics

• All the ways goods and services are produced,
  distributed, and consumed by individuals and
  businesses in the United States and throughout
  the world.

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Three Kinds of Resources

• Natural those things from nature that can be
  used to make goods.
• Land, rocks, oil are all examples of natural
  resources
• Human people who are doing mental or physical
  work. Therefore, anyone who works is a human
  resource.
• Teacher, carpenter, doctor are all examples of
  human resources.
• Capital things that are made by people and used
  to produce other goods and services.
• Machines, tools, computers are all examples of
  capital resources.

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Goods and Services

• Goods are products that people make or grow.
  These are real items available for purchase.
• Services are the jobs that people do to help
  other people.

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Producers Consumers

• Producers are the people or businesses that make
  goods or provide a service.
• PRODUCERS SELLERS
• Consumers are the people who buy and use the
  goods or services. They spend money to buy
  things they want or need.

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Wants vs. Needs

• Wants are things people would like to have but
  can live without.
• New video game, jewelry, bicycle,
• Needs are things necessary for people to live.
• food, water, shelter

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Production

• The way goods or services are made
• Makes use of the 3 types of resources
• The resources that are used during the production
  of goods and services are called inputs.
• Good services that are created as a result of
  these inputs are called outputs.

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Specialization

• When one area or person learns to do one job or
  make one product very well
• Many workers specialize in one certain area of
  production to complete an ASSEMBLY LINE.
• A row of workers and machines that put the pieces
  of a product together until the final product is
  complete
• Example A factory worker at Chrysler

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Savings vs. Investment

• Savings is money that has been set aside for
  future use and not spent on goods services in
  the present.
• Investments means that you put money into a
  business

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World Trade

• The movement of goods and services between
  countries.
• Exports are goods and services that are produced
  here in the U.S. and sent to buyers in another
  country.
• Imports are goods and services that are produced
  in another country and brought here to the U.S.
  for other people to purchase.
• Interdependence is increased by world trade.
  This means that Nations and regions of the world
  are dependent on one another for trading and
  buying products that the people need.

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Supply Demand

• Supply is the amount of things available to buy
  or sell.
• Demand is the consumers need and desire for a
  product or service.
• Scarcity is when there is not enough of a product
  or resource to meet the demand.
• Effects of Supply and Demand
• Supply Demand Quiz

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Decision Making Steps

• Identify the Problem
• Choose at least 2 alternatives
• Consider the outcomes
• Make your decision
• What was your opportunity cost? (what did you
  give up when you made your choice?)

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Private vs. Public

• Private Goods Services are provided by
  individuals through markets such as grocery
  stores, car dealerships, restaurants, and beauty
  shops.
• Public Goods Services are provided through the
  federal, state, or local government for public
  use. Schools, postal services, public libraries,
  national parks are all examples of public goods
  and Services

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Starting a Business

• Entrepreneurs are people who take risks to start
  a business.
• use all their time and money to get business
  started
• Has to organize resources and production to
  create a good or service
• Risk losing all money and resources
• Income is the money earned by starting a
  business.
• Profit is the difference between the amount paid
  for an item and the amount the item is sold for.
  Businesses make a profit when the income is more
  than the expenses it has to pay to keep the
  business going.
• A loss when a business has more expenses than it
  does profits.

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ACTIVITIES
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Credits, Citations, References

• Basics of Economics. Skrabanek, D. W.
  Steck-Vaughn Company, 2002.
• http//www.kidseconposters.com/songs/supply_demand
  _song.html
• http//www.mcwdn.org/ECONOMICS/SupDemand.html