Introduction to Economics 5 Capitalism Defined. Warm Up Use the first 15 minutes of class to produce...
-
Upload
osborn-thompson -
Category
Documents
-
view
216 -
download
1
Transcript of Introduction to Economics 5 Capitalism Defined. Warm Up Use the first 15 minutes of class to produce...
![Page 1: Introduction to Economics 5 Capitalism Defined. Warm Up Use the first 15 minutes of class to produce your goods. NEWS FLASH There is a gas shortage, therefore.](https://reader036.fdocuments.net/reader036/viewer/2022071808/56649f0b5503460f94c1e9c3/html5/thumbnails/1.jpg)
Introduction to Economics 5
Capitalism Defined
![Page 2: Introduction to Economics 5 Capitalism Defined. Warm Up Use the first 15 minutes of class to produce your goods. NEWS FLASH There is a gas shortage, therefore.](https://reader036.fdocuments.net/reader036/viewer/2022071808/56649f0b5503460f94c1e9c3/html5/thumbnails/2.jpg)
Warm UpUse the first 15 minutes of class to produce your goods.
NEWS FLASHThere is a gas shortage, therefore all variable costs are increased by $10.You must also create a sign for your store (make sure it includes your logo).You may use left over materials from your clothing or you can buy new paper to create your sign on.
![Page 3: Introduction to Economics 5 Capitalism Defined. Warm Up Use the first 15 minutes of class to produce your goods. NEWS FLASH There is a gas shortage, therefore.](https://reader036.fdocuments.net/reader036/viewer/2022071808/56649f0b5503460f94c1e9c3/html5/thumbnails/3.jpg)
Goods
Physical Capital- Human-made objects used to create other goods and services. E.g. factory building, specialty
machinery, etc… Can save companies time and money
in the production process.
![Page 4: Introduction to Economics 5 Capitalism Defined. Warm Up Use the first 15 minutes of class to produce your goods. NEWS FLASH There is a gas shortage, therefore.](https://reader036.fdocuments.net/reader036/viewer/2022071808/56649f0b5503460f94c1e9c3/html5/thumbnails/4.jpg)
Producer Price Index
PPI- indicator that determines the health of the nation’s economy that judges the price of materials vs. the price of finished goods from year to year.
![Page 5: Introduction to Economics 5 Capitalism Defined. Warm Up Use the first 15 minutes of class to produce your goods. NEWS FLASH There is a gas shortage, therefore.](https://reader036.fdocuments.net/reader036/viewer/2022071808/56649f0b5503460f94c1e9c3/html5/thumbnails/5.jpg)
Output versus Input
Output- the level of production; is most profitable when price is equal to marginal cost.Input- Any change in the cost of an input such as the raw materials, machinery, or labor used to produce a good, will affect supply.
![Page 6: Introduction to Economics 5 Capitalism Defined. Warm Up Use the first 15 minutes of class to produce your goods. NEWS FLASH There is a gas shortage, therefore.](https://reader036.fdocuments.net/reader036/viewer/2022071808/56649f0b5503460f94c1e9c3/html5/thumbnails/6.jpg)
Marketplace
Keep track of receipts in log books for producerFirst 5 minutes-1st person shops, other man’s shop2 minutes-adjust prices5 minutes-2nd person shopsAdd up receipts
Date Product/Purchase
Business Amount +/-
Authorization/ Signature
Balance
![Page 7: Introduction to Economics 5 Capitalism Defined. Warm Up Use the first 15 minutes of class to produce your goods. NEWS FLASH There is a gas shortage, therefore.](https://reader036.fdocuments.net/reader036/viewer/2022071808/56649f0b5503460f94c1e9c3/html5/thumbnails/7.jpg)
Warm Up:The Market
Copy and Answer:Evaluate the market. As a consumer: What items did you buy? Were they affordable? Too cheap? Too expensive? Was anything missing? As a producer: Did you have enough to sell? Why or why not?
![Page 8: Introduction to Economics 5 Capitalism Defined. Warm Up Use the first 15 minutes of class to produce your goods. NEWS FLASH There is a gas shortage, therefore.](https://reader036.fdocuments.net/reader036/viewer/2022071808/56649f0b5503460f94c1e9c3/html5/thumbnails/8.jpg)
Law of Diminishing Return
When one of the factors of production is fixed in supply, additions of other factors will lead to an increase in returns up to a point, but beyond this point returns will diminish.
![Page 9: Introduction to Economics 5 Capitalism Defined. Warm Up Use the first 15 minutes of class to produce your goods. NEWS FLASH There is a gas shortage, therefore.](https://reader036.fdocuments.net/reader036/viewer/2022071808/56649f0b5503460f94c1e9c3/html5/thumbnails/9.jpg)
Increasing returns
Recycling When a producer can reuse a material
in a new way this will increase the output vs. input ratio.
![Page 10: Introduction to Economics 5 Capitalism Defined. Warm Up Use the first 15 minutes of class to produce your goods. NEWS FLASH There is a gas shortage, therefore.](https://reader036.fdocuments.net/reader036/viewer/2022071808/56649f0b5503460f94c1e9c3/html5/thumbnails/10.jpg)
Increasing returns
Education and training When your employees are better
trained in their field/specialization they will be able to be more productive.
If they can have the knowledge to solve problems on their own, they keep work stoppage to a minimum.
![Page 11: Introduction to Economics 5 Capitalism Defined. Warm Up Use the first 15 minutes of class to produce your goods. NEWS FLASH There is a gas shortage, therefore.](https://reader036.fdocuments.net/reader036/viewer/2022071808/56649f0b5503460f94c1e9c3/html5/thumbnails/11.jpg)
Investing in your Company
Take into account new investments, purchase them and get:Education $50- 6 free sheets of white paper/3 colored /2 printed paper or fabricRecycling $75- materials ½ off