What is Economics?

The exchange and management of goods and services to provide consumers with needs and

wants.

Definition of Economics

Everyone is a consumer and is part of the economic system.

Goods and Services

Goods- items sold or bought Can you name some goods?

Services- any action taken by one person or group for another in exchange for payment

Can you name some services?

Brainstorm Time

List all the workers seen at school. Which provide a good and which provide a service? Can they provide both?

Why is there a growing need for service jobs?

List all of the jobs that teens do. Do they provide a service or a good?

Yellow Pages Goods and Services Search

Your assignment is to use the categories located in the yellow pages of the phone book and

determine 15 that are services and 15 that are goods. Who can finish first?

Goods and Services are products that satisfy your needs and wants.

What a person must have in order to survive.

Needs

Discussion Questions

Will every one have the same basic needs? Do we all fulfill those needs in the same

manner? What might determine what a person describes

as a need?

Wants

What you desire.

Need vs. Wants

As the teacher reads an item, decide if it is considered a need or a want for you. Move to

the left side if it is a want and the right side if it is a need.

Why do people get into Economic difficulty?

Peoples' desires for wants and goods are unlimited and the resources are limited.

Demonstration of unlimited wants and needs and limited resources.

You want m&m's (wants)You have so much money(limited resources)

(use deck of cards to determine your resource)

Since resources are limited, they must be divided among all consumers.

Anything used to produce a good or service.

What is the definition of Resource?

Resource Group Work

Each group will be given a product. You are to determine the resources that would have been

used to produce this product.

What resources are used to make each product?

Ice cream trumpet

Chair team victory

Vacation good grade

Book text book

Orange tree candy bar

Rice Krispie treat house

Football pop sickle

So how are resources divided among the consumers?

Brute force- biggest, strongest goes first First come / first serve Equal share Random- equal chance to get the resource Neediest Tradition- divided the way it has always been done Market- supply and demand Planned- someone divides up the resources

Resources are used to produce goods and services.

What are the different World wide Economic Systems?

Command System- (socialism, communism) government largely dictates how businesses allocate resources to produce the product / services and sell them to individuals, individuals are also provided with equal shares of resources.

What are the different World wide Economic Systems?

Market- Individuals and businesses are free to direct themselves in how they purchase and use their resources to produce the product / services and sell them. (capitalism)

What are the different World wide Economic Systems?

Mixed- Individuals make their own economical choices, but the government may play a role in distributing resources.

Discussion Questions

Which of the World Wide Economic systems is the United States? Why do you believe this? Did we start off as a different system than we are

today?

What influences Economic Systems?

Supply and demand for a good or service Weather Unemployment Amount of competition to produce a good or

service Global trade system

Teacher demonstration of Orange juice and the Influences of economic systems.