economies of the world! … and the questions they each have to answer. intro to econom ics
TRANSCRIPT
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ECONOMIES OF THE WORLD!
… and the questions they each have to answer.
Intro to Economics
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Question one!
• What should we produce?– Food?– Clothing?– Shelter?– Entertainment items/services?– Healthcare?– Education?
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Question two!
• How do we produce it?– By hand?– In factories?– Small businesses?– Big businesses?– Do adults make the products?– Do children make the products?
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Question three!
• Who are we producing it for?– Everyone?– Only the rich people?– Only the poor people?– Only for certain groups?
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Market Economy
• What should we produce?– Whatever people will buy.
Question one!
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Market Economy
• How do we produce it?– Whatever way is cheapest!
Question two!
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Market Economy
• Who are we producing it for?– Whoever will buy it– If no one will buy it, we won’t produce it
(supply & demand)
Question three!
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Command Economy
• What should we produce?– What the government thinks people will
need
Question one!
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Command Economy
• How do we produce it?– By assigning jobs to the citizens– By using whatever capital resources
available (including older factories and machines)
Question two!
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Command Economy
• Who are we producing it for?– We are producing it for every citizen, so
everyone can have an equal amount
Question three!
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Public vs. Private Businesses
Public• Businesses owned by the
government.• Examples: Court houses,
schools, post office, fire stations, police stations.
Private• Privately owned
businesses.• Entrepreneurs• NOT government operated.• Examples: retail stores,
grocery stores (Wal-Mart, Target, Publix)
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Traditional Economy
• What should we produce?– The basics! The most basic things
necessary to live.
Question one!
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Traditional Economy
• How do we produce it?– Mostly by hand or using basic tools.
Question two!
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Traditional Economy
• Who are we producing it for?– Ourselves, our families, or to barter if
we have too much
Question three!
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What is the difference between commercial and subsistence farming?
Commercial Farming• Growing enough food
to feed large populations.
• *Think: Commercials on TV” sell to large amounts of people.*
Subsistence Farming• Survival Farming;
enough for themselves or their families.
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Entrepreneur
• The person responsible for bringing the human, capital, and natural resources
together to start a business.
Human Resources (Capital): Workers with knowledge, skills, and experience to make goods and provide services. (Examples: Teachers, Cashiers)
Capital Resources: Machines, factories, supplies (Examples: cash register, oven)
Natural Resources: Raw materials to make goods-found in nature, such as: land, water, forests, minerals, soil. (Example: tree, fruit)
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Economics
• Goods: Products(footballs, make-up, iPods, computers)
• Services: An action performed for money (example- doctor, hairdresser)
• Consumer: Person who buys and uses goods and services.
• Producer: Person who makes or provides services.
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Specialization vs. Diversification
• Specialization • Diversification