- Slides: 21
Bell Ringer-Matching Game 1. Upton Sinclair the Jungle led to people being concerned about food safety. 2. During the Great Depression the Elderly and Disabled were being overly distressed by tough economic times. 3. During Great Depression electricity could not reach rural north Georgia Mountains. During 1940 -70’s minorities could not get loans for houses (mortgages). A. Fair Isaac Credit scoring B. Social Security C. FDA D. TVA
Bell Ringer You are the manager at Wendy’s. you need to increase burger output from 10 burgers an hour to 30 burgers an hour. Describe the action steps you would take to increase your output and efficiency? Would you want Coach Auer to: cook lunch? Do open heart surgery? Teach math? Teach your middle school brother?
Specialization – Division of labor to increase productivity; you are able to produce more if people specialize. When companies specialize, they become experts at doing one particular thing. Specialization increases the amount of things a society can produce and leads to a more efficient use of resources.
Division of Labor is: A. A Kind of specialization that increases productivity B. A kind of voluntary exchange of products C. A kind of marginal cost that reduces productivity D. A kind of labor that has no marginal costs.
Human Capital: Education Health Care Wellness Motivation Social Mobility Innovation/Tech advancement
Three people are starting a business making cakes, decorating them, and delivering them to customer. Explain how they could use specialization and division of labor to make their business more efficient.
Goods, Services, and Consumers Economics is concerned with economic products – goods and services Consumer good – intended for final use by individuals Captial goods – Goods used to produce other goods and services
Services A Service is a type of economic product or work that is performed for someone. Example: haircuts, home repair, doctors, lawyers, teachers, etc. Difference between good and service: A service is intangible, or cannot be touched.
Consumers A person who uses goods and services to satisfy wants and needs. Consumers indulge in consumption (the process of using goods and services in order to satisfy wants and needs.
Value, Utility, and Wealth Value in Economics refers to worth that can be expressed in dollars and cents. Utility – For something to have value, it must also have Utility. The utility of a good or service may vary from one person to the next. A good or service does not have to have utility for everyone, only utility for some. For something to have value, economists decided, it must be scarce and have utility.
What is Wealth? Wealth, in an economic sense, is the accumulation of those products that are tangible, scarce, useful and transferable from one person to another A nation’s wealth is comprised of all items including natural resources, factories, stores, houses, theaters, clothing, etc.
Wealth While goods are counted as wealth, services are not. Services are not tangible. However, this does not mean that services are not useful.
Market A Market is a place where buyers and sellers meet to engage in mutually beneficial exchanges with one another.
Circular Flow of Economic Activity Firms Households Factor Market Product Market
Households A person or group of people living in the same residence Households own the factors of production – land, labor, and capital – Households provide businesses/firms with land, labor and capital in the factor market. Households are also the consumers of goods and services. Households buy products (goods and services) in the product market.
Firms A business, or firm, is an organization that uses resources to produce a product, which it then sells. Firms transform “inputs, ” or factors of production, into “outputs, ” or products Firms purchase factors of production from households. This arena of exchange is called the factor market
Factor Markets are where productive resources are bought and sold. Firms purchase or rent land (natural resources). This is where entrepreneurs hire labor for wages and salaries, acquire land in return for rent, and borrow money from households to purchase capital, and they pay interest to households in return Profit is the financial gain made in a transaction.
Product Markets Product markets are where the goods and services that firms produce are purchased in the product market The money that individuals receive from businesses in the factor markets, returns to businesses in the product markets. This money is then used to produce more goods and services.
Productivity is a measure of the amount of output produced by a given amount of inputs in a specific period of time. Productivity goes up whenever more output can be produced with the same amount of inputs in the same amount of time.
Economic Interdependence Economic interdependence means that we rely on others, and others rely on us, to provide the goods and services that we consume.
Free Enterprise Economy A Free Enterprise Economy: One in which consumers and privately owned businesses, rather than the government, maek the majority of the WHAT, HOW, and FOR WHOM decisions.