Agenda Discussion or quiz on articles Review Factors of Production Production Possibilities...
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Transcript of Agenda Discussion or quiz on articles Review Factors of Production Production Possibilities...
Agenda
Discussion or quiz on articles Review Factors of Production Production Possibilities Worksheet Economic Systems, Questions and Goals Adam Smith and Karl Marx Circular Diagram of an EconomyHomework
Read N.E. Chapter 6 Review Powerpoint for next class
(online) Read “Current Reading Assignment”
(online)
Questions1. What factor of production is key to Taiwan’s
success?2. Which factor of production was important....
a. When Columbus sailed to the new world? b. During the period of colonization?c. During the industrial revolution?
3. How does this effect you in 2014?
Student Video…Four Factors of Production
http://www.youtube.com/watch?v=0TDn8pbT4ME&feature=youtu.be
a couple questions….1. A production possibilities frontier shows
(a) farm goods and factory goods produced by an economy.(b) the maximum possible output of an economy.(c) the minimum possible output of an economy.(d) underutilization of resources.
2. An economy that is using its resources to produce the maximum number of goods and services is described as (a) efficient.(b) underutilized.(c) growing.(d) trading off.
Worksheet
Production Possibilities Worksheet
Production Possibilities Handout
THREE MINUTE BREAK
http://www.online-stopwatch.com/bomb-countdown/
Economic Systems, Questions & Goals
3 Economic Three Economics SystemsQuestions Free Mixed Centrally Planned
Market Economy EconomyWhat gets Consumers role GovernmentProduced?
forHow it gets Producers GovernmentProduced? individuals
Who Income and GovernmentConsumes?
government
Economic Systems, Questions and Goals
Societies organize themselves within different systems to allocate resources to produce goods and services to achieve economic goals
The Five Economic Goals
1. Growth More stuff
2. Freedom Individuals free to choose
3. Efficiency Maximum Output
4. Security Everyone has a minimum
5. Equity Equal distribution of output (goods and services) Sharing is caring
What is the most common economic system in the world?
What is the most common economic system in the world?
ANSWER: Mixed Economies
WHY? Let’s talk about the five economic
goals
The Five Economic Goals
1. Growth More stuff
2. Freedom Individuals free to choose
3. Efficiency Maximum Output
4. Security Everyone has a minimum
5. Equity Equal distribution of output (goods and services) Sharing is caring
Take a few minutes, which goal is most important to you?
SURVEY OF THE CLASS
Which Goal is best achieved by which Economic System? Growth Efficiency Freedom Security Equity
Free Market
Centrally Planned
What is the most common economic system in the world?
ANSWER: Mixed Economies
WHY? Because societies / nations want some of each of the goals
Economic Systems, Questions & Goals
Three Economic Three Economic SystemsQuestions Free Mixed Centrally Planned
Market Economy Economy
1. What gets Consumers role Government Produced?
for2. How it gets Producers
Government Produced? individuals
3. Who Income and Government Consumes?
government
Adam Smith 1700s
What was going on in the late 1700s? Philosopher Individual (i.e. entrepreneur) creates value Focus on…
Growth Freedom Efficiency
Every individual necessarily labors to render the annual revenue of society as great as he can. He generally neither intends to promote the public interest, nor knows how much he is promoting it. He intends only his own gain, and he is, in this, as in many other cases, led by an invisible hand to promote an end which was not part of his intention.
Adam Smith
Karl Marx Late 1800s,early 1900s
What was going on in late 1800s / early 1900s?
Labor, not entrepreneur, creates value
Focus on… Equity Security
“Labour is the source of all wealth.”Karl Marx
Circular Diagram of an Economy
What type of Economics System?
Why?
What type of Economics System?
Why?
Examples of why I think people are hardwired for equity
Test results Kindergarten playground $5
Let’s go back to Economic Goals….
Winston Churchill’s Description
The inherent vice of capitalism is the unequal sharing of blessings; the inherent virtue of socialism is the equal sharing of miseries.
He advocated free market stuff
Homework Read N.E. Chapter 6 (Why Bill Gates is
so much richer than you are) Review Powerpoint for next class
(online) Read “Current Reading Assignment”
(online). Cuba (http://www.economist.com/node/21550418/print).
HANDOUTS