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Chapter 2


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Robinson PPT chapter 2

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Chapter 2

  1. 1. March 21, 2011 2 nd Week of Trimester! Chapter 2 Section 1 Notes
  2. 2. Economic Systems- method used by a state to determine how a society produces and distributes goods and services.
  3. 3. What Goods and Services Should be Produced? <ul><li>Food, shelter, national defense, education, or public health? </li></ul><ul><li>Since resources are scarce, there is always a trade-off involved when determining production. </li></ul>
  4. 4. How should Goods and Services be produced? <ul><li>What power sources- coal, steam, gasoline, natural gas, solar. </li></ul><ul><li>Education services- 10, 20, or 30 students in a classroom. </li></ul><ul><li>Automobiles- domestic or imported? </li></ul><ul><li>Farming- large or small farms. </li></ul>
  5. 5. Who Consumes Goods and Services? <ul><li>It depends on a society’s social values and goals. For example, in the U.S., doctors are paid very well, and can have a much higher standard of living than a police officer. In Japan, teachers are revered and paid exceptionally well compared to the U.S. </li></ul>
  6. 6. Explain why an owner of a tree removal business ($100,000) makes more money than a police officer ($48,000)?
  7. 7. Four Economic Systems <ul><li>Traditional economy - relies on custom or habit for economic choices. </li></ul><ul><li>Market Economies -decisions are made by individuals and everything is based upon trade. </li></ul><ul><li>Centrally Planned - gov. decides alone all economic questions. </li></ul>
  8. 8. <ul><li>Mixed Economies - a combination of traditional, market, and centrally planned. </li></ul>
  9. 9. Economic Goals <ul><li>Use pages 25-26 to write 2 sentences that explains the following goals: </li></ul><ul><li>Economic Efficiency- </li></ul><ul><li>Economic Freedom- </li></ul><ul><li>Economic Security and Predictability </li></ul><ul><li>Economic Equity </li></ul><ul><li>Growth and Innovation . </li></ul><ul><li>Additional Goals? </li></ul>
  10. 10. Adam Smith Read page 33 Write an alternative argument about Adam Smith’s economic system. Make sure you find a flaw with his system and provide a solution.
  11. 11. Homework Page 27 1,3,4,6