Bell Work:

1. Bell Work: • What do you think the United States would be like if there was no government? (explain why!) -Make Sure you fill this in the Wednesday section of your bell work sheet. - Please fill in the date.

2. Government and the State: Chapter 1.1

3. What is Government? • Government: Is an institution in which a society makes and enforces its public policies. • Public Policies: Are the things a government decides to do. Raise taxes, fund education, and environmental policies. • In order for governments to make and carry out public policies, governments must have power.

4. Government Power: • Every government has and exercises three basic kind of power. • Legislative- make laws, form public policies. • Executive- execute and enforce laws and policies. • Judicial- power to interpret laws, determine their meaning, and settle disputes. • Powers of a government are outlined in a country’s constitution.

5. What is a Constitution?: • A constitution is the body of laws that set out the principles, structures, and processes of a government. Ex: - election process - death of a President

6. Dictatorship vs. Democracy: • Dictatorship- executive, legislative, and judicial power is held by a single person or small group. - People have very little power and/ or say in how the government is run. • Democracy- supreme authority over the government rest with the people. - Majority rules, and people vote to have their voices heard.

7. The State: • State = nation or country 4 Characteristics of the State: • Population- a state must have people living within its borders. • Territory- must have land with recognized borders. • Sovereignty- has supreme and absolute power within its territories. • Government- every state has a government

8. Theories on how the state came about: • The Force Theory: one person or a small group claimed control over an area and forced all within it to submit to that person’s or groups rule. • Evolutionary Theory: Developed naturally over time. • Divine Right Theory: God created the state, gave those of royal birth a “divine right” to rule. • Social Contract Theory: state arose out of a voluntary act of free people.

9. Bell Work • What is government? • What 3 basic powers do all governments have? (List and explain)

10. Forms of Government: 1.2

11. Classifying Governments: • Governments may be classified in 3 ways. 1. Who can participate. 2. Geographic distribution of power. 3. Relationship between legislative and executive branches.

12. Who Can Participate: • Democracy- supreme authority rest with the people -Direct (pure)-will of the people is directly translated into laws by the people themselves. (Only works in small communities). -Indirect (representative)-elected officials who are chosen by the people.

13. Dictatorship-ruler holds absolute authority over the people. -Autocracy- one person holds unlimited power. -Oligarchy- small elite group holds the power to rule.

14. Geographic Distribution of Power: • Unitary- a single central agency holds all government powers. • Federal Government- government power is shared between the central government, state governments, and city governments. (U.S. Gov’t) • Confederation- an alliance of independent states. Government has very little power and handles only the problems the member states assign to it. - (U.S. during revolutionary war, U.S. during civil war)

15. Relationship Between Legislative and Executive Branches: • Presidential Government- divides power between the 3 branches of government. (legislative, judicial, and executive) • Parliamentary Government-focuses power in the legislative branch, executive branch is chosen by and subject to the legislative branch.

16. Bell Work: 9/7/12 • What is the difference between a direct and indirect democracy? • What is the difference between an autocracy, and an oligarchy?

17. 5 Basic Concepts of Democracy: 1.3

18. Worth of the Individual • Each individual, no matter who they are, is a separate and distinct being.

19. Equality of All Persons: • This concept insist that all are entitled to: 1. Equality of opportunity 2. Equality before the law

20. Majority Rule, Minority Rights: • What the majority wants, will be public policy. However, this cannot infringe on peoples rights.

21. Necessity of Compromise: • Both side giving up something they want, in order to reach an agreement. - Our country was built on compromise

22. Individual Freedom: • All individuals have freedom. However, no individual enjoys complete freedom.

23. Bell Work: • In which form of government are all political powers held at the central level? • Explain how power is shared in a federal government.

24. What is Economics?“Scarcity and Factors of Production” 1.4

25. Choices and Decision Making: • The study of economic begins with the idea that people cannot have everything the need and want. • Need: Anything that is necessary for survival. (food, shelter…etc.) • Want: Something we desire, but is not essential to our survival. (xbox, ipod,…etc.)

26. What is Economics? • Economics: The study of how people satisfy their wants and needs by making choices. • People must make choices due to scarcity. • Scarcity: limited quantities of resources, and unlimited wants. (think of oil) -no matter what it is, sooner or later a limit is always reached. -scarcity always exist because our needs and wants are always greater than our supply.

27. Scarcity vs. Shortage: • Shortages: Shortages occur when producers will not, or cannot offer goods and services at current prices. • Shortages can be temporary or long-term (unlike scarcity, which always exists.)

28. Goods and Services: • Many Americans find it difficult to understand the idea of scarcity, because when they look around they see goods and services all around them. • Good: a physical object. (shoes, shirt) • Service: actions or activities that one person performs for another. (haircut, tutoring)

29. Factors of Production: • These are the resources that are used to produce goods and services. Land- all natural resources. Labor- Task completed by a person who is paid. Capital- any human made resource that is used to produce other goods and services. There are 2 different types of capital.

30. Physical capital: human made objects used to create goods and services. (Tools) • Human capital: Knowledge and skills a worker gains through education and experience. (lawyer = education, McDonald’s worker = experience or job training)

31. Entrepreneurs: • Entrepreneurs: These are the people who pull resources together in order to create goods and services. • Ambitious leaders, usually risk takers, who decide exactly how to combine land, labor, and capital resources to create new goods and services. • Develop original ideas, start businesses, and create new industries. • Most importantly, entrepreneurs fuel economic growth.

32. Entrepreneur Assignment: • Tell me what business you are going to start, and why you decided on starting that business. • Need or Want? • Good or Service? • Human and Physical Capital?

33. Bell Work: • If you hadn’t come to school today, what would you be doing instead?

34. Opportunity Cost: 1.5

35. Trade-Offs: • Every decision we make in life involves choosing one thing, while giving up another. • Trade-offs: Trade-offs are all of the alternatives we give up when we choose one thing over another. • You may choose to sleep late in the morning. • By doing so, your trade-offs may be: -eating breakfast , studying for a test, reading the newspaper • All decisions involve trade-offs because resources are limited.

36. Who Makes Trade-Offs?: • Individuals- more time at work, less time for hobbies. • Businesses- must make decisions on how to use land, labor, and capital. • Society (Countries)- if a country invest more money in one thing, it has less money to spend on another. (guns or butter decision)

37. Opportunity Cost: • Opportunity Cost: The most desirable thing given up in a decision. • Sometimes making a decision is difficult because opportunity cost may be unclear, or complicated. (Decision Making Grid)

38. Decision Making Grid

39. Thinking at the Margin: • Thinking at the Margin: When you decide how much more or less to do, you are thinking at the margin. (Decision: study 1, 2, or 3 hours extra for a test.)

40. Making a Decision at the Margin: • Making a decision at the Margin: When you look at the opportunity cost and the benefit of a decision, you are making a decision at the margin. (Decision: Study 1, 2, or 3 hours extra for test.) • Opportunity Cost: Less time to spend with friends. • Benefit: Passing the test

41. Production Possibilities Graph: • Economist often use graphs to analyze the choices and trade-offs that people make • Why? Because graphs help us see how one value relates to another. • Production possibility graph: Shows the alternative ways to use an economy’s resources

42. - Trade-Offs 30_ - Currently Unachievable 25_ 20_ Shirts 15_ - Underutilization 10_ 5_ 5_ 15_ 10_ 20_ 25_ 30_ Shoes

43. 30_ 25_ 20_ Shirts 15_ 10_ 5_ 5_ 15_ 10_ 20_ 25_ 30_ Shoes

44. What the Graph Shows: • 1. Efficiency- using resources in such a way as to maximize the production or output of goods and services. • 2. Growth-Increases in technology will cause output to increase. • 3. Cost-The opportunity cost of producing one good over another.

45. Law of Increasing Cost: • Law of increasing cost:As production switches from one item to another, more and more resources are necessary to increase production of the second item. 1 2 3 4 5

46. Bell Work: • 1. What does the “Guns and Butter Decision” refer to ? • 2. What is the difference between trade-offs and opportunity cost? • 3. What is scarcity?

47. Types of Economic Systems: 1.6

48. Economic Systems: • Different economic systems have evolved in response to the problem of scarcity. • Economic system: A method used by a society to produce and distribute goods and services. • Which economic system a society employs depends on that society’s goals and values.

49. 3 Basic Questions: • When determining which type of economic system to employ, a country must answer these three basic questions. 1. What goods and services should be produced? 2. How should these goods and services be produced? (electricity produced by oil or water) 3.Who will consume these goods and services?

50. Traditional Economic System: • Traditional economies: Relies on habit, custom, or rituals to decide what to produce, how to produce it, and whom to distribute it to. • (ex: Australian bush tribes and Amish communities.)