Chapter 1.4ECONOMICS AND OTHER SOCIALSCIENCES Allison Barnette, NBCT Caledonia Middle School Created for use with Prentiss Hall American Nation
ECONOMICS IS HOW PEOPLE MANAGE THEIRRESOURCES TO SATISFY THEIR NEEDS ANDWANTS.
3 QUESTIONS: 1. What goods and services do we produce? 2. How do we produce them? 3. For whom do we produce them?
WHAT GOODS AND SERVICES DO WE PRODUCE? What do people want and need (demand)? What you decide to produce or sell (supply) depends on factors like the culture of an area. Example: If you live in an area that often has water shortages, products that reduce water usage may be popular.
HOW SHOULD WE PRODUCE GOODS ANDSERVICES? Technological improvements may make a difference in these choices. This may also determine where these goods are produced. Example: Electronics and vehicles that were once manufactured using manual labor are now manufactured using robotics, or they are produced overseas.
FOR WHOM SHOULD WE PRODUCE GOODS AND SERVICES? Which consumers (i.e. users/buyers) will be willing to buy what you have to sell? How will they pay for it? We live in a cash economy, where people pay money for their goods. *Using a credit card for purchases is not the ideal way to buy goods unless you know that you can pay the balance owed within the month. Otherwise, interest, a percentage of what you owe, is added to what you already owe. On the other hand, debit cards draw money from accounts where you have already placed money.
OUR FOUNDING FATHERS BELIEVED IN FREEENTERPRISE They believed that individuals should be able to make their own decisions about what goods they want to produce, buy, and sell. This is a democratic way of making economic choices. Government should have very little influence or control over private property or competition in the private sector. In a communist system, the government places controls on what and how much is produced, as well as the prices for them. In a socialist system, production and distribution of some goods or services are run by a collective
OTHER SOCIAL SCIENCES Political science- Anthropology-study of study of government how people and Civics- study of rights cultures develop and responsibilities of Archaeology- study of citizens evidence left by earlier people Sociology-study of how people behave in groups Psychology-study of how people think and