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ECONOMICS

ECONOMICS. PAGES 49-73. I. What is Economics? 4 Economic Questions Economic Terminology II. Supply & Demand Competition, Surplus & Scarcity Law of Demand III. Money Bartering Silver & Gold Interest & Interest Rates IV. World & U.S. Economy Proprietorship, Partnership & Corporation

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ECONOMICS

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  1. ECONOMICS PAGES 49-73

  2. I. What is Economics? • 4 Economic Questions • Economic Terminology • II. Supply & Demand • Competition, Surplus & Scarcity • Law of Demand • III. Money • Bartering • Silver & Gold • Interest & Interest Rates • IV. World & U.S. Economy • Proprietorship, Partnership & Corporation • Stock Market • Tariffs & Trade Agreements • V. Louisiana Economy

  3. What is Economics? • Economics is the study of production, distribution and the consumption of goods and services.

  4. Goods and Services • Good: • Service:

  5. 4 Questions of Economics • What is being produced or offered? • How will it be produced or offered? • How much should be produced or offered? • Who will buy the product or service?

  6. Economic Terminology • Market System: (Capitalist System) People are allowed to operate business with little government influence. Citizens answer the four questions of economics. Example: United States • Regulatory Agency: • Command System:(Communist System) A small group of government officials answer economic questions. Example: China and Cuba • Traditional System: Questions answered by tradition and custom. Example: African countries • Dividends:

  7. Assignment • Please Draw the Chart on Pg. 51 which shows Economic Flow.

  8. Supply and Demand: • A market system is driven by supply and demand. • Demand – the desire, ability, & willingness to buy a product.

  9. Price As price goes down… Demand Quantity demanded goes up… Price As price goes up… Demand Quantity demanded goes down… The Law of Demand

  10. Supply & Demand Curve

  11. Competition: • Why so many choices? • Consumers want options.

  12. Competition: • Which one do we choose? • Marketing • Advertising • Other techniques

  13. Supply & Demand • What is a surplus? is an amount or quantity greater than what is needed. • What will happen to products if a surplus exists? • Scarcity exists when there is not enough of a product? • What happens to prices if scarcity exists?

  14. Supply & Demand Curve

  15. Supply & Demand • Supply & Demand also effects wages, salaries, and unemployment. • What is the difference between wages and salaries? • Wage – • Salary -

  16. Money • During prehistoric times, people used the barter system to buy and sell goods. Native Americans used the barter system. Ex. Pg 56 • People started using gold and silver because it was more convenient. The metals do not tarnish and are scarce. Eventually governments created coins. • Today money is backed by government with gold. Money without government backing has no value.

  17. Money • Checks, debit cards and credit cards also allow people to purchase items. • Interestis charged when using credit cards. Banks also charge interest with loans. • There are two types of interest: simple & compound. • If you had a credit card, which kind of interest would you like not to have?

  18. Money • Inflation occurs when demand for goods and services is greater than the supply. • Deflation occurs when there is a greater supply of goods and services than there is demand for them.

  19. U.S. and World Economies • Proprietorship – Owned by one person • Partnership – Two or more people • Corporation – Large business (Delta Airlines) • Tariff – A tax on foreign or imported goods • North America Free Trade Agreement (NAFTA) (U.S., Mexico, and Canada – 1993)

  20. Louisiana’s Economy • Since beginning as a French colony LA’s economy was based on natural resources and farming. • When demand for LA’s resources strengthen so does the state’s economy. • Louisiana’s top resource is oil & natural gas. • 15% of oil in nation • Exxon refinery in Baton Rouge is largest in western hemisphere

  21. Louisiana’s Economy • Fishing is the state’s 2nd most important industry. Pg. 69 • LA plays an important role in international trade due to location on the Mississippi River. • 25% of nations exports go through LA • New Orleans is the third busiest port in the world

  22. Louisiana has become a popular place to film movies. Big Momma’s House 2 The Dukes of Hazzard Interview with a Vampire The Haunted Mansion Mortal Kombat The Waterboy Dead Man Walking Ray Hollywood South

  23. Louisiana’s Economy • Income Tax - • Property Tax - • User Fees - • Voters usually have the right to approve taxes.

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