Chapter 1 � Economic Decisions and Systems by 56lqR8b2


									            Chapter 1 – Economic Decisions and Systems

Objective: Introduce the important economic concepts that determine the products and services available for
            consumers and how economic systems are structured.

Chapter Overview:
       Section 1-1: Satisfying Needs and Wants
       Section 1-2: Economic Choices
       Section 1-3: Economic Systems
       Section 1-4: Supply and Demand

Chapter Outline:
       Section 1-1
              Read Section 1-1
              Assignment: Section 1-1 Assessment, Questions 1-5
              BLOG: What was the most important idea you learned in Section 1-1?

       Section 1-2
              Read Section 1-2
              Assignment: Section 1-2 Assessment, Questions 1-3 & Use the decision-making process to choose
                           between participating in an after-school activity or holding a part-time job. Make sure
                           you label each step.
              BLOG: What other decisions could you use the decision-making process for?

       Section 1-3
              Read Section 1-3
              Assignment: Section 1-3 Assessment, Questions 1-3 & Describe the current economic system of
                           the following countries: Chile, Latvia, Costa Rica, Zimbabwe, & Singapore.

       Section 1-4
              Read Section 1-4
              Assignment: Section 1-4 Assessment, Questions 1-4
              BLOG: What are some of the advantages of being a consumer in a free enterprise economy?

Chapter 1 Assessment:
       Complete Questions 1,4, 5, 11-30, 35
                 Section 1-1: Satisfying Needs and Wants

       Explain the difference between needs and wants
       Distinguish between goods and services
       Describe the types of economic resources

       needs –

       wants –

       goods –

       services –

       economic resources –

Needs and Wants
       Needs are Essential

       Wants Add to the Quality of Life

       Needs and Wants Are Unlimited
Goods and Services

     Goods and Services for Businesses and Consumers

     The U.S. Economy

Economic Resources

     Natural Resources

     Human Resources
Capital Resources

Resources Are Limited
                         Section 1-2: Economic Choices

       Understand the basic economic problem
       Explain the steps in the decision-making process

       scarcity –

       economic decision-making process –

       tradeoff –

       opportunity cost –

The Basic Economic Problem


       Tradeoffs and Opportunity Costs
The Decision-Making Process

     1. Define the problem.

     2. Identify the choices.

     3. Evaluate the advantages and disadvantages of each choice.

     4. Choose one.

     5. Act on your choice.

     6. Review your decision.
                         Section 1-3: Economic Systems

       Identify the three economic questions
       Differentiate among the main types of economic systems
       Describe the economic system of the U.S.

       economic system –

       command economy –

       market economy –

       traditional economy –

       mixed economy –

       capitalism –

The Three Economic Questions

       Three Economic Questions
              1. What goods and services will be produced?
              2. How will the goods and services be produced?
              3. What needs and wants will be satisfied with the goods and services produced?

       What to Produce?

       How to Produce?
     What Needs and Wants to Satisfy?

Types of Economic Systems

     Command Economy

     Market Economy

     Traditional Economy

     Mixed Economy
The U.S. Economic System

     The U.S. economic system is based on 4 principles
            1. private property
            2. freedom of choice
            3. profit
            4. competition

     Private Property

     Freedom of Choice


                        Section 1-4: Supply and Demand

       Describe supply and demand orally and with graphs
       Discuss how supply and demand affect prices of products and services

       consumer –

       producer –

       demand –

       supply –

       market price –

Participating in a Market Economy

       Consumers Set Demand

       Producers Establish Supply

       A Graphic View

Determining Price
Factors Influencing Demand

Factors Influencing Supply

Determining Market Price

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