Transcript EOC Economics Review

EOC Economics Review
Tuesday, December 6, 2016
Using the Venn Diagram below to
compare and contrast different
economic systems by doing the
following:
1.
2.
Explain how they answer the
three basic economic questions:
What to produce? How to
produce? For whom to
produce?
(Use the key terms: private
ownership, profit motive,
consumer sovereignty,
competition, and government
regulation.)
Explain how do these systems
meet the broad social and
economic goals of freedom,
security, equity, growth,
efficiency, and stability.
Command
Economy
Mixed
Economy
Do this now. We will discuss this 5 mins after the bell rings!
Market
Economy
Using the Venn Diagram below to
compare and contrast different
economic systems by doing the
following:
1.
2.
Explain how they answer the
three basic economic questions:
What to produce? How to
produce? For whom to
produce?
(Use the key terms: private
ownership, profit motive,
consumer sovereignty,
competition, and government
regulation.)
Explain how do these systems
meet the broad social and
economic goals of freedom,
security, equity, growth,
efficiency, and stability.
Command Economy
•Production and distribution of goods are
controlled by government regulation
•Often private ownership is not allowed
and the market does not operate under
consumer sovereignty.
Government
regulation
Mixed Economy
•Production and distribution of
goods controlled by market and
government regulation
•Private
ownership
•profit
motivated
•consumer
sovereignty
•competition
Market Economy
•Production and distribution of
goods controlled by the market
•The market is profit motivated
and private ownership is
encouraged. Desires and needs
of consumers control the output
of producers. (consumer
sovereignty).
Fundamental Economic Concepts
(20% of EOC)
• Scarcity and opportunity cost
• Comparison of marginal benefit and marginal
cost
• Benefits of specialization
• Types of economic systems
• Role of regulatory agencies
• Investment and economic growth
“Two roads diverged in a yellow wood,
And sorry I could not travel both
And be one traveler…”
~Robert Frost
Key Vocab:
Resource
Scarcity
Allocate
Opportunity Cost
Marginal cost
Marginal benefit
Specialization
Role of Regulatory Agencies
• “The existence of numerous government
regulatory agencies is yet another way that the
United States is not a purely capitalist society. “
• “Government regulation takes many forms.
Overall, the goal of the government is to provide
for the health and safety of its citizens and its
businesses. Some regulation protects citizens
from corporate abuse. Other government
regulations help businesses recover from external
problems by offering money to help offset
unforeseen disaster.”
Investment and Economic
Growth
What could cause
the PPC shift in
each of these
cases?
Wednesday, December 7, 2016
Circle Flow Diagram
What is the correct sequence
of events?
1. Paige bought a new CD at
Target
Households-Flow of $-Product
Market
2. Jacob was hired at
Cabellas.
3. Target hired 5 employees
for the summer.
4. Kroger completed payroll
for the week.
5. Pete was paid for doing a
job well.
Microeconomics
Studies the interaction of people and businesses (firms) within a market
•
•
•
•
Circular flow (diagram) of goods and resources
Laws of Supply and Demand
Markets and prices
Types of business organizations and market
structures
Supply and Demand
Key Vocab:
Law of Supply
Law of Demand
Equilibrium price
Equilibrium quantity
Price ceiling (shortage)
Price floor (surplus)
Price elasticity
Sole proprietorship
Partnerships
Corporations
Monopoly
Pure competition
Oligopoly (cartel)
How do the following affect
price?
1. Cost of inputs/resources
2. Changes in technology
3. Changes in prices of other
goods
4. Substitute goods
5. Complementary goods
6. Changes in income
7. Changes in preference
Macroeconomics
• https://www.youtube.com/watch?v=d8uTB5X
orBw&index=5&list=PL8dPuuaLjXtPNZwz5_o_
5uirJ8gQXnhEO
Thursday, December 8, 2016
Answer the following
questions using the table:
1. How much is $2 US
equivalent to in each of the
following currencies?
a. British pound
b. Danish krone
c. Euro
d Japanese yen
2. How much of each of the
following currencies would
I get if I exchanged $5 US?
a. Mexican Peso
b. Swiss franc
c. Thai baht
3. Who would benefit if the
exchange rate of the US
dollar increased?
4. Who would benefit if the
exchange rate of the US
dollar decreased?
International Economics
• Advantages of International Trade
• Issues Concerning International Trade
• Exchange rates
https://www.youtube.com/watch?v=geoe6NBy10&list=PL8dPuuaLjXtPNZwz5_o_5uirJ8g
QXnhEO&index=15
Advantages of International Trade
• Absolute advantage
• When two (or more) countries produce the
same goods, one will ALWAYS have a
comparative advantage
• Balance of trade
• Balance of payments
Issues concerning Economic Trade
Barriers to Trade
1. Tariff
2. Quota
3. Embargo
4. Standards
5. Subsidy
Exchange rate: appreciate and depreciate
Friday, December 9, 2016
1. Compare and contrast the
following kinds of income tax:
• Progressive tax
• Regressive tax
• Proportional tax
2. Name as many other kinds of taxes
as you can.
Personal Finance Economics
• Personal spending and saving
• Role of financial institutions
• How monetary and policy issues affect
individuals
• Costs and benefits of credit
• Protecting against financial loss
• Workers in the marketplace
Federal Reserve
• https://www.youtube.com/watch?v=1dq7mM
ort9o&list=PL8dPuuaLjXtPNZwz5_o_5uirJ8gQ
XnhEO&index=10
Types of Financial Institutions
1.
2.
3.
4.
Bank
Credit Union
Savings and Loan
Payday Loan Company
Vocab- bonds, stocks, mutual funds, savings,
credit worthiness, insurance
Real Wages and Inflation
Simple vs. Compound Interest