Transcript Understanding Basic Economics

Understanding Basic Economics
Warm – Up
January 27, 2011
CRCT Prep
1. Who takes a financial risk in starting a
new business in a market economy?
• A. Consumers
• B. individual business people
• C. government planners
• D. combination of planters and investors
Activator:
UNPACK THE STANDARD
SS7E3 The student will describe factors that influence economic growth and
examine their presence or absence in Nigeria and South Africa.
• a. Explain the relationship between investment in human
capital (education and training) and gross domestic
product (GDP).
PULL OUT THE NOUNS AND VERBS WITHIN YOUR
GROUP!
What should you be able to do??????
EQ: What is the relationship
between investment in human
capital (education and training) and
gross domestic product (GDP)?
What is the relationship between
investment in capital (factories,
machinery, and technology) and
gross domestic product (GDP)?
Today we learned the relationship
between human capital,
investments in capital, and GDP
because we need to understand
the impact it has on economic
growth in Africa.
SS7E3 The student will describe factors
that influence economic growth and
examine their presence or absence in
Nigeria and South Africa.
• a. Explain the relationship between
investment in human capital (education
and training) and gross domestic product
(GDP).
• b. Explain the relationship between
investment in capital (factories, machinery,
and technology) and gross domestic
product (GDP).
NOTE ‘CARD’ TAKING!
Front
Back
• Every time you
see this picture
you have a new
note card to
make!
EXAMPLE
Definition
Picture
Vocabulary word
Relationship
HUMAN CAPITAL
• Human Capital means the knowledge and
skills that make it possible for workers to
earn a living producing goods and services.
Human Capital
More skills and education workers have the better, they are able to work with
less mistakes and sell more products = more Money
in the
pockets of the companies they work for.
• (ex. USA invest in human capital by providing workers
with an education in turn workers work in good paying
jobs that sell more products = high GDP (gross domestic
product for the USA)
GDP
• Gross Domestic Product (GDP) = taking
the total value of all goods and services
produced by a country in a single year and
dividing that number by the total
population.
RELATIONSHIP
• South Africa--invest heavily in
human
capital===Higher
GDP (Gross
Domestic Product)
• However due to the apartheid
system that was put in placethe advantages favor the white
than the non-white(which have
the highest unemployment rate
in the country)
• Nigeria---have a
strong economy in
oil and an educated
population
However due to
government
corruption, civil war
and military rule have
left Nigeria very poor.
70% of population
live on only a dollar a
day.
Checking for Understanding
Place your card down on the desk and be
prepared to hold up your answer!
1. SKILLS AND KNOWLEDGE
WORKERS HAVE ARE APART OF A
COUNTRY’S ____________.
Human Capital
UNPACK THE STANDARD
SS7E3 The student will describe factors that influence economic growth and
examine their presence or absence in Nigeria and South Africa.
• b. Explain the relationship between investment in capital
(factories, machinery, and technology) and gross
domestic product (GDP).
PULL OUT THE NOUNS AND VERBS WITHIN YOUR
GROUP!
What should you be able to do??????
(One page per group, put every ones name on the paper)
(be prepared to answer)
CAPITAL GOODS
• Capital Goods are factories, machines, and
technology that people use to make
products to sell.
GDP
• Gross Domestic Product (GDP) = taking
the total value of all goods and services
produced by a country in a single year and
dividing that number by the total
population.
RELATIONSHIP
• Producing more goods for sell= High
Economic Growth and high Profits
(money)
• Higher profits=higher GDP(Gross
Domestic Product)
Checking for Understanding
Place your card down on the desk and be
prepared to hold up your answer!
2. The factories and machines used to make
goods are called ____________.
Capital Goods
Relationship (cont’d)
(South Africa-heavily invest in equipment to get gold,
diamonds and platinum)
(South Africa-heavily invest in iron and steel production
that make automobiles and trucks)
(Nigeria has invested heavily in capital goods for its oil
industry. New technology is required in order to
compete in the global oil market. The concentration
on capital goods for this segment of the economy,
however, has left many Nigerians without proper food
and housing.)
Closing:
Using the Vocabulary cards your group
needs to come up with your own summary
definitions for each term discussed in the
lesson.
(Use the same, group unpacking the standard
paper, to be turned in)