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Management
Choices
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Types of Investing
Real Estate
Stocks
Bonds
Mutual Fund
Collectibles
Commodities
Certificate of Deposit (CD)
Commodities
Collectibles
Based on the pictures
shown, discuss your
thoughts about the
meaning of Real Estate,
Commodities, and
Collectibles.
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Mutual
many investors for the purpose of investing in stocks,
bonds, and other assets. Investors own small amounts of
many different assets.
Personal Money
Management
Review
Worksheet
Summarizing Strategy:
Write a short story using the following
terms: Money, Income, Credit, Interest,
and Investing
Be sure to write a story, not a paragraph
defining the terms. The terms should be
used in context. For example: Susies job is
_______ where her income is ______ a year.
She loves spending.
Economic
Systems
Essential Question:
How do economic systems answer
the questions of what, how, and for
whom to produce?
Standards:
SS6E1a, SS6E5a, SS6E8a.
Compare how traditional, command, and
market economies answer the economic
questions of (1) what to produce, (2) how to
produce, and (3) for whom to produce
SS6E1b, SS6E5b, SS6E8b.
Explain how most countries have a mixed
economy located on a continuum between
pure market and pure command.
Economic Systems
A Country must decide how to
distribute its resources to meet
the needs of its people.
How a country makes these
decisions determines its type of
economic system.
Vocabulary
Break
In small groups, sort the pictures
provided as examples of production,
distribution, or consumption
Economic Systems
There are 3 basic types of
economic systems that have to
answer three basic questions:
(1) What to produce?
(2) How to produce?
(3) For Whom to produce?
Economic Systems
WHAT TO PRODUCE? (What kinds of goods and services
should be produced?)
HOW TO PRODUCE? (What productive resources are
used to produce goods and services?)
FOR WHOM TO PRODUCE? (Who gets to have the goods
and services?
The way a society answers these questions determines
its economic system.
Traditional Economy
An economic system in which economic
decisions are based on customs and
beliefs
People will make what they always made &
will do the same work their parents did
Exchange of goods is done through
Bartering: trading without using money
Traditional Economy
Who decides what to produce?
People follow their customs and make only what
is needed to take care of oneself
Traditional Economy
Examples:
Villages in Africa and South America; the
Inuit tribes in Canada; the caste system in
parts of rural India
Distributed Summarizing
Draw an illustration in
your foldable that
represents a
Traditional Economy.
Command Economy
Government makes all economic
decisions & owns most of the property
Sometimes called communism
Examples: Cuba, former Soviet Union,
North Korea
This system has not been very
successful & more and more countries
are abandoning it
Command Economy
Who decides what to produce?
Government makes all economic decisions
Command Economy
Strengths: people do not have to
worry about employment, housing,
education, and healthcare
Weaknesses: consumers own
nothing, no choices/freedom,
limited innovation by individuals
Distributed Summarizing
Draw an illustration in
your foldable that
represents a
Command Economy.
Market Economy
In a market economy, buyers and sellers answer
the three economic questions
All resources are privately owned
Who decides what to produce?
Whatever the market demands that will produce
a profit
Who decides how to produce goods and services?
Private producers (businesses)
For Whom are the goods and services produced
for?
Consumers who demand the product and are
willing to pay
Market Economy
Strengths: People can start their
own businesses, more choice
Weaknesses: The desire for money
may lead to poor quality of goods
and services, business owners have
to risk losing money
Distributed Summarizing:
Draw an illustration in
your foldable that
represents a Market
Economy.
Distributed
Summarizing:
Economic
System Quotes
Mixed Economy
Market + Command = Mixed
There are no pure command or market
economies. To some degree, all modern
economies show characteristics of both
systems and are often referred to as mixed
economies.
Most economies are closer to one type of
economic system than another
For example, businesses own resources and
determine what and how to produce, but the
Government regulates certain industries
Mixed Economy
Most democratic countries fall in this
category (there are no truly pure Market
or Command economies).
Examples: U.S., Brazil, Mexico, Canada,
UK, etc.
Continuum of Economies
Mixed
Pure
Command
Pure
Market
Name That
Economic System
Activity
Summarizing
Strategy
Economic Systems
Continuum Activity
Specialization encourages
voluntary trade and can be a
positive factor in a countrys
economy.
Specialization occurs when one
country can produce a good or
service at a lower opportunity
cost than another country.
Vocabulary Review:
With a seat partner determine whether the images
represent a good or a service.
Goods
Services
Set 2
New shirt
New shoes
New pants
Set 3
Movie ticket
Concert ticket
Sporting event
ticket
When instructed by the teacher, turn to a seat
partner and identify from each set the item that you
would buy and the opportunity cost for each set.
Specialization Activity:
Specialized Bags,
Card Specialty
or another activity
Distributed Summarizing:
With a seat partner, discuss the following
Summarizing Strategy
Answer the essential
question, how does
specialization encourage
trade between countries?
Trade Barrier:
Embargos
Trade Barriers:
Embargos
Embargoes usually happen for
political reasons. Because the United
States does not want to support
countries that may support terrorism,
it has used embargos against Iran,
Iraq, and Syria.
Trade Barrier
Identification
Activity
Distributed Summarizing
On the bottom of your Trade Barrier Identification Activity
sheet, answer the following scenario:
The Canadian Pear Growers Association is concerned about
increased competition from imported pears that are larger than
those grown within Canadas borders.
The Association wants to lobby for a trade barrier. Some
members think a tariff or quota would be most beneficial.
Others disagree and suggest an embargo would be best.
Summarizing Strategy
Answer the following questions on the Trade Barriers Response
Sheet
1.
2.
3.
Why is it necessary to
exchange currencies in
order for nations to trade?
SS6E2d, SS6E6b, SS6E9c.
Explain why international trade requires a
system for exchanging currencies between
nations.
We have a
global economy
because countries
trade with others
from all over the
world.
International trade
involves countries
from all over the
world engaging in
voluntary trade.
Summarizing Strategy
How would trade be affected if
there were no system for
exchanging currency?
SS6G4c,SS6G11c, SS6G14b
Evaluate how the literacy rate affects the
standard of living
What is GDP?
Video clip
Economic Growth
There are 4 main factors that influence
economic growth within a country:
Investment
What do you think investment
means? Turn to a seat partner
and share your thoughts.
Investment is when money,
resources, or opportunities are
provided in order to gain profitable
returns in the future
Who makes the investment???
Standard of Living
What are some of the goods,
services, and luxuries that
someone with a high standard of
living might enjoy that someone
with a low standard of living
might not enjoy?
Standard of Living
Country
Literacy Rate
GDP per capita
Life Expectancy
Unemployment
Rate
Puerto Rico
94.1%
$18,700
78.58
12%
Haiti
52.9 %
$1,400
57.56
40.6%
Human Capital
What is the current
investment in your
human capital?
Distributed Summarizing
Activating Strategy:
Concept
Attainment
Activity
How do natural
resources affect a
countrys economy?
SS6E3c, SS6E7c, SS6E10c.
Describe the role of natural
resources in a countrys
economy.
Economic Growth
There are 4 main factors that influence
economic growth within a country:
Natural Resources
Natural Resources are
materials or substances
that occur in nature and
can be used for economic
gain.
Natural Resources
With a seat partner, discuss
the following question:
How does the presence or
absence of natural
resources impact a
countrys economy [GDP]?
Natural Resources
Countries that have a lot of natural
resources are able to use them to
produce goods and services cheaper
than a country that has to import
natural resources.
Therefore, a country with a lot of
natural resources USUALLY has a
greater GDP than a country with little
natural resources.
Comparing
Natural
Resources
Worksheet
Economic Growth
There are 4 main factors that influence
economic growth within a country:
Entrepreneurship
An Entrepreneur is someone who has
an idea for a good or service and takes
the risks to produce it.
Entrepreneurs are important because
they come up with new ideas and use
human, capital, and natural resources
to bring their ideas to life and to the
marketplace.
Entrepreneurship
It can be several things:
Starting your own business
Inventing something new
Changing the way something
was previously done so that it
works better
Summarizing Strategy
Pretend you have an idea for a
business. Describe your idea.
Explain what it would take for
you to become an
entrepreneur using your idea.
EUROPE
ECONOMIC
SYSTEMS
Explain why the United Kingdom and Germany are closer to the
market side of the continuum even though all three countries are
identified as a mixed market economy.
Brazil
There is competition in most major
industries.
What does this mean? What kind of economic
system does this suggest Brazil has?
Brazil
Strongest economy of all the South
American countries
Strong agricultural, mining,
manufacturing and service industries
Government controls some areas like
health care, some banks, and postal
service.
Brazil
Top trading partners: The United States
and Argentina
Brazil is the #1 producer of coffee in the
world
Other products:
Crops: sugarcane and oranges
Manufacturing: cars, trucks and other items
made of steel (Brazil has iron ore deposits as
a natural resource)
Cuba
According to Cubas government, most industries are
owned by the government. The U.S. banned trade with
Cuba because of its communist government.
What does this mean? What type of economic system does
this suggest that Cuba has?
Cuba
BUT ULTIMATELY Government owns all
resources and property, and decides what
and how much is to be produced.
Cuba
Trading Partners: Venezuela and China
(the Soviet Union was Cubas main trading
partner before its collapse)
Major Exports: sugar, nickel, tobacco and
fish