Unit 5: Working and Earning

1. Unit 5: Working and Earning • Goal: • Describe the factors that influence an individual’s income. • Brainstorm……

2. 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

3. Overview 1. Most people derive their income from ….. • employment • Other means include…… • government entitlements, annuities (retirement savings) trust fund, stock profits, etc.

4. 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.)

5. May be innate - define… • (natural; in-born) • - Physical, artistic, intellectual

6. 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

7. 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

8. 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

9. 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