CRCT Warm Up

1. CRCT Warm Up What should be on your desk right now?

2. Which number is nearest the Red Sea? A. 6 B. 2 C. 1 D. 4

3. Which are MOST important in a command economy? • Custom and habit • Governmental planners • Consumers and the market • A combination of consumers and government planners

4. Why is it important for nations to have a system to convert money from one country to another? • Converting to different currencies makes it possible to buy and sell goods between nations with different types of money. • Converting to different currencies make goods cost less. • Banks are not able to handle different types of currencies. • The dollar is the most valuable currency in the world today.

5. HOMEWORK COPY ASSIGNMENT IN AGENDA Decide whether you want to complete a Social Studies Fair or Science Fair Project by THIS Friday. Economics Quiz Friday

6. Economic Understandings

7. Every society must deal with providing goods and services to its people. Due to the availability of resources, countries have to ask three basic questions. What are the three questions every country must ask when deciding what to produce? • What goods and services will be produced? • How will these goods and services be produced? • Who uses the goods and services that are produced?

8. Economics • How many basic types of economic systems are there? • Name the economic systems. • Which economic system do most textbooks say is the most common throughout the world?

9. Economics • How many basic types of economic systems are there?3 • Name the economic systems.Traditional, Command, Market • Which economic system do most textbooks say is the most common throughout the world? Mixed. The GCEE states that mixed is not an economic system but rather a blending of two different types of systems.

10. MARKET ECONOMY System based on free-enterprise; open markket system. Characteristics: No government intervention Economic decisions based on individuals who decide what to produce and sell This type of economic system supports individual risk takers called entrepreneurs

11. Entrepreneur People who think of new ways to combine productive resources (natural, human and capital) to produce goods and services that they expect to sell to cover production cost. Entrepreneurs risk their own money in hopes that they will make a profit. How does the entrepreneur benefit the economy?

12. STOP AND THINK In a market economy, how are economic decisions made? Who takes on the financial risk in starting a new business in a market economy?

13. COMMAND ECONOMY • Government planning groups make most of the basic economic decisions • Characteristics: • Government planners decide • Which goods and services to produce • How and where goods are produced and sold • What type of jobs the workers will have NO ROOM FOR ENTREPRENEURS

14. STOP AND THINK What is a negative aspect of the command economy? What is a positive aspect of the command economy?

15. TRADITION BASED ECONOMY • Economic decisions are based on customs and habits of the past. • Characteristics: • Found in rural areas/regions • People depend on extended families • Dominated by subsistence farming/herding • Trade includes simple crafts • Bartering replaces currency

16. STOP AND THINK How are economic decisions made in a traditional economy? What could be a possible setback for a community with a traditional economy?

17. MIXED ECONOMY A mixed economy blends components of two or more of the following economic systems to varying degrees: traditional, market, and command. Characteristics economies contain economic freedoms for privately owned businesses interventions in place for environmental and social welfare/safety.

18. STOP AND THINK What are the benefits of a mixed economy?

19. Pure Command Mixed Economy Pure Market

20. Economic Systems Pure Market Iran 45% Saudi Arabia 64% Israel 68% 0 100 Pure Command Mixed Economy

21. Economic Systems Pure Market Nigeria 55% South Africa 64% 0 100 Pure Command Mixed Economy

22. Economic Systems Pure Market North Korea 2% India 54% Japan 73% China 53% 0 100 Pure Command Mixed Economy

23. SPECIALIZATION The ability of a country to produce products it makes best and that are in demand on the world market. BENEFITS specialization builds a profitable economy allows a country to earn money to buy items that cannot be made or produced in the country. Specializations is the foundation of international trade

24. Voluntary Trade Key to healthy market economy Both trading countries see the benefit from exchanging goods Limited government restrictions and regulations Encourages specialization that is more productive and profitable A strategy that ends trade barriers by making trade in regions more open and supportive.

25. PUTTING THE THEORY TO WORK Read the descriptions below and identify areas were specialization and voluntary trade could benefit the countries below. • Southwest Asian countries have an abundance of oil and natural gas, but lack farmland and the ability to produce food. • Japan has few natural resources, but can produce advanced technical products with raw materials. • Israel has little oil wealth, but leads the world in agricultural technology especially in drier conditions. • 4. Uganda produces high quality cotton. • 5. South Africa has a rich supply of gold,diamonds, platinum and other precious metals. • Kenya specializes in manufacturing cotton cloth, but they do not grow much cotton.

26. Trade Barriers Anything that slows down or prevents trade or the exchanging of goods between countries.

27. Trade Barriers • POLITICAL TRADE BARRIERS • Civil War • Political disputes between countries • War • GEOGRAPHICAL TRADE BARRIERS • Natural Disasters that prevent or slowdown trade • Physical features that prevent or slowdown trade.

28. ECONOMIC

29. Tariff A tax placed on imported goods. Protective Tariff a tax put on the imported goods coming into a country to make the imported goods more expensive than the domestic goods.

30. Quota Sets a specific limit or number of a particular product that can be imported over a given period of time from another country.

31. A trade embargo occurs when one country announces it will no longer trade with another country in order to isolate the country and cause problems for that country’s economy. • Caused by political disputes (social, cultural or economic disputes) • Hurts all country’s involved

32. STOP AND THINK In what ways can a trade embargo hurt the countries involved? Since no country produces everything it needs, embargoes force countries to go without resources that are needed. Trade embargoes limit the economic potential of countries because it limits the amount of goods that can be sold and produced.

33. CAPITAL GOODS Capital goods include factories, machines and technology that people use to make products to sell. A country will invest in capital goods in the following ways: Investing in transportation Investing in technology Investing in building factories Investing in communications Investment in equipment/machinery

34. HUMAN CAPITAL The knowledge and skills that make it possible for workers to earn a living producing goods and services. • Countries invest in human capital in the following ways • Investment in training and education • Investment in healthcare and safe working conditions

35. BUILDING VOCABULARY ACTIVITY Listed to the right are words that can be grouped into four categories. The category headings are also listed in the boxes to the right. Read through the words and group them under the four headings to show your understanding of the connection between the terms. A few words will be classified under other words. Organize the words in a web under the title “ECONOMICS.” ECONOMICS

36. TICKET OUT THE DOOR Answer the following essential questions: • How does specialization encourage trade between countries? • How are tariffs, embargos and quotas trade barriers? • What impact does investing in human capital and capital goods have on GDP?

37. WORLD ECONOMIES Use pages 56-57 in the textbook to help you complete this graphic organizer. Copy the graphic organizer onto your notebook paper.

38. Which are a part of a business’s capital resources? • Factories used to make goods • Money for scholarships to graduate schools • Workers who make the goods and perform services. • Money spent to train workers to use new technology

39. What is a “quota”? • Tax placed on imported goods when they enter the century • A decision to prevent certain goods from being imported at all • A tax placed on goods when they are purchased in the market place. • A limit to the number or amount of a foreign-produced good that is allowed into the country.

40. Copy the following chart on to the back of your Table of Contents in your Interactive notebook. CRCT PREP

41. What is an “embargo”? • A tax placed on goods coming into the country from overseas. • A limit to the amount of a certain good allowed into the country. • A tax paid by the producer before he can sell his goods in another country • A formal halt to trade with a particular country for economic or political reasons.

42. TYPES OF NEWSPAPER LEADS There are 4 types of “leads” that can begin a news article. 1. IMPACT 2. “QUOTE” 3. QUESTION 4. IMPRESSSION

45. WORLD ECONOMIES • Many people work in manufacturing, service and information industries. • Have strong secondary, tertiary (finished products), and quaternary (information gathering) industries. • Good system of education (high literacy rates) • multiple large cities • access to telecommunications (high level of technology) • May be poor • Most people work in agriculture or other type of primary industry • Over crowding in cities • Poor educational systems (low literacy rates) • Little access to telecommunications • Poor healthcare

46. PREPARE FOR Geography Quiz Pretest