Unit 5: Working and Earning

• Goal: • Describe the factors that influence an

individual’s income. • Brainstorm……

Key Ideas

• Employment provides a means of creating…….• personal income• Income is determined by many factors including….• individual skills and abilities, work ethic and

market conditions

Overview

1. Most people derive their income from …..• employment• Other means include……• government entitlements, annuities

(retirement savings) trust fund, stock profits, etc.

2. Income may be determined by…….skills and abilities that an individual has• Some require intense training• -Technical skills, specialized training• Some require high levels of education• -Levels of degrees: ………• Associate’s, Bachelor’s, Master’s,

Doctorate (Ph.D.), Medical (M.D.)

• Some keys to Income may be innate - define…• (natural; in-born)• - Physical, artistic, intellectual

3. Income may be influenced by an individual’s… work ethic …..-define…..• Amount of effort one puts into work• Personal motivation• - Could be internal…define…ex?• Will to succeed• Character • Personal Satisfaction

• Income could be driven by external incentives (ex’s?..)

• Commission, bonuses, promotions, raises• More hours or better attitude may = higher

income• Lack of motivation/work ethic may lead to….

demotion, elimination of job

• 4. Market conditions can influence an individual’s income

• Economic, social, cultural and political conditions can all affect incomes

• Economic growth or contraction can affect….• performance bonuses, wage increases• Political conditions often influence job stability

and availability of jobs–Stable vs. Fragile–Fiscal policy decisions - tax rates, job programs

• Jobs that are in high demand, but where the supply of workers with particular skills is limited often offer ……

• higher incomes• - Basic concept of supply and demand

–The only doctor in a town may reap a high salary–An overabundance of teachers may

drive down their salaries