Economics

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Economics

• Ch. 2 Learning Activities

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EOCT REVIEW

• The nation of Keilmanland needs to build a new
  dam to control flooding near its larges city. If
  Keilmanland is a purely market economy, then
  these new improvements will MOST likely be left
  up to

• a. the government
• b. the individuals who are willing to pay for
  the new dam
• c. anyone who would benefit from the dam
• d. the owners of the property on which the dam
  would be built

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1 RewindProduction Possibilities Graph/Curve

• Draw a production possibilities graph which
  represents efficiency, growth, and
  underutilization.
• Use Pgs. 15-16

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2 Warm-up

• Draw a chart characterizing the advantages and
  disadvantages of both a centrally planned economy
  and a free market economy. Use pages 29-44
• Ex. A disadvantage of a free market economy is
  that some needs and wants are difficult to answer
  in a market place
• Education
• Health care
• National defense
• Roads

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3 Government Interference

• Pg. 41 What are some ways that governments
  intervene in the market place?
• List at least 5

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4 Global Connections

• Pg. 41. Read the paragraph that discusses
  Swedens Mixed Economy. Compare and Contrast
  Swedens and the United States Economy in 1
  paragraph (3-5 sentences).

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5 Background Economics in History

• Read the passage on page 41.
• Write one paragraph that describes how Franklin
  D. Roosevelt helped to relieve the economic
  suffering of the Great Depression.

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6 Transferring

• Pg 43.
• Governments transfer money for various reasons to
  those who need it most.
• What are some ways that our government transfers
  money?
• List 3

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Government Transfers

• Examples
• Disability income through Social Security
• Retirement Income through SS
• Workers Compensation to those injured on the Job
• Unemployment Insurance
• TANF Temporary Aid to Needy Families

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7 Vocabulary

• In your own words describe
• Laissez faire
• Private Property
• Free Enterprise
• Continuum
• Transition
• Privatize
• Look up any words you are not familiar with.

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8 Compare/Contrast EconomiesNorth Korea / Hong
Kong

• Pg 43. Figure 2.5
• Describe the various levels of government
  intervention in each economy in a T-chart.

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North Korea and Hong Kong

• Government owned property and economic output
• State owned industries (95)
• Imports banned
• Foreign Companies banned

• Free-market
• Wage/Price controls on rent and some public
  services
• Highly receptive to foreign investment
• No trade barriers
• Gov. protects private property
• Rarely intervenes
• Banks independent

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9 U.S. Government Intervention

• Pg 44.
• Describe the level of intervention by the
  government found in the U.S.

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10 Circular Flow Model of Mixed Economy

• Pg 42
• Describe the various ways the government is
  involved in this model.

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Circular Flow Model Cont.

• Government Involvement
• Examples
• Government taxes on individuals and firms
• Gov. buys land, labor, and capital from
  individuals (households)
• Gov. Buys goods and services in product market
• Gov. provides services such as roads
• Taxes help to pay disability transfers,
  unemployment benefits, and help the survival of
  some industries such as in agriculture and more
  recently such as with the automobile and banking
  industries

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11 Government Expenditures

• Read pg. 43 to determine what the U.S.
  governments greatest expenditure is in.

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Answer

• Social Security!

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12 Government Provided Goods and Services

• Compile a list of some goods and services that
  government provides.
• How would your lives be different if the
  government did not provide these goods and
  services?

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HomeworkDue Next Monday/Tuesday

• Option A
• Research a European Country and its economy.
• Where would this country fall on the economic
  continuum?
• Is the countrys economy more of a free market or
  a centrally planned economy?
• Write a one-page typed report.
• Be ready to present orally to the class.

• Option B
• Research Feudalism and the Commercial Revolution.
• What were some of the causes of the collapse of
  feudalism and the commercial revolution?
• Write a one-page typed report.
• Be ready to present orally to class.

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Simulation The Keilman Island Economy

• Review page 48.
• We will be breaking up into groups and deciding
  what type of economy we would like to have on
  Keilman Island.
• Will it be a centrally planned economy, a
  free-market economy, or a mixed economy.
• Each group should copy the chart on page 49 and
  answer the questions provided (a-h)
• Each group will present to the class what it
  decided on.