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Producers And Consumers


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Producers And Consumers

  1. 1. Producers and Consumers <ul><ul><li>10 th Grade Social Studies </li></ul></ul><ul><ul><li>You are smart! </li></ul></ul>
  2. 2. Learning Target: Evaluate the effects of specialization, trade, and interdependence on the economic system of the U.S.
  3. 3. The basics… <ul><li>Resources </li></ul><ul><ul><li>Scarce </li></ul></ul><ul><ul><li>Land, labor, capital, entrepreneurship </li></ul></ul><ul><li>Goods </li></ul><ul><ul><li>Food, clothing, services </li></ul></ul><ul><li>Trade </li></ul><ul><ul><li>“ extras” </li></ul></ul><ul><li>Gross Domestic Product </li></ul><ul><ul><li>The total value of goods and services produced in the U.S. (GNP is different….) </li></ul></ul>
  4. 4. All about Trade! <ul><li>Surplus </li></ul><ul><ul><li>When the U.S. sells more to other countries than it buys </li></ul></ul><ul><li>Deficit </li></ul><ul><ul><li>When the U.S. sells less than it buys from other countries </li></ul></ul><ul><ul><li>Aka---it is better to have a surplus! </li></ul></ul>We love a surplus!
  5. 5. Specialization <ul><li>Industrialized nations compete by specializing in what they can produce most efficiently </li></ul><ul><ul><li>U.S. has farmland (crops), technology, pineapples (Hawaii!), etc. </li></ul></ul><ul><ul><li>Saudi Arabia has oil </li></ul></ul><ul><ul><li>Japan has compact cars, technology </li></ul></ul><ul><ul><li>France has cheese and wine! </li></ul></ul><ul><ul><li>This increases trade and competition for the best markets and prices! </li></ul></ul>Aloha!
  6. 6. Interdependence <ul><li>World Trade Organization </li></ul><ul><li>North American Free Trade Agreement </li></ul><ul><li>European Union </li></ul><ul><li>Tariff! </li></ul><ul><ul><li>Protective tax usually on foreign goods </li></ul></ul><ul><ul><li>Designed to protect workers </li></ul></ul><ul><ul><li>Can drive up prices…booooo </li></ul></ul>