This document provides an overview of an economics lesson on different economic systems. It includes notes on capitalism, communism, socialism and how each system addresses what to produce, how to produce it, and who to produce for. There is also a discussion of health care systems and notes on private health insurance terms. Students engage in debates and simulations to apply the concepts.

1. Good Day! DRAW A LINE SEPARATING TODAY & YESTERDAY 1) Write: Date: 01/06/09 , Topic: Economic Systems 2) On the next line, write “ Opener #1 ” and then: 1) Plot your mood, reflect in 1 sent . 2) Respond to the opener by writing at least 2 sentences about : Your opinions/thoughts OR/AND Questions sparked by the clip OR/AND Summary of the clip OR/AND Other things going on in the news. Announcements: None Intro Music: Pandora

3. Agenda 1) Health Care Case Study (as an intro to “What is Economics”) What you will be able to do: 1) Which economic system is best? Reminder 1) Print/Design Checks 1) First Day Forms

7. Review 1) Scarcity : The assumption that everything is limited (time, objects, skills). 2) Economics *: Study of how resources are allocated *like all areas of social sciences, they are not pure sciences in that they rely on human behavior, and humans are not 100% predictable. The closest thing social science gets to real science is psychology. 3) Micro-economics : Resource decisions on an individual level 4) Macro-Economics : Resource decisions on a society level 5) Behavioral Economics : The psychology of resource decisions

8. Welcome to Economics Study of resource allocation: 1) What is produced? 2) How to produce it? 3) Who do we produce it for?

10. 4) Who should get the liver transplant a) Wealthy retired baseball player (90% chance of survival) b) Mother of 2 (50% survival chance) c) Teenager (20% survival chance) d) Nobel prize peace winner scientist (5% chance of survival)

11. Notes #1a , Title: “ Econ Systems Notes ” How do different econ systems decide: 1) What is produced? 2) How to produce it? 3) Who do we produce it for? Capitalism (Free Enterprise/Free Market): Individual ppl decide what, how, and for who based on prices/profit (competition makes things better) Communism : Gov decides what, how, and for who based (gov makes things better) Socialism : Let ppl make money, buy property, but uses high taxes to provide everyone their basic needs (hybrid)

15. Capitalism (USA*) All Private Even US not 100% Socialism (Sweden) Gov Control Private Communism (North Korea) All Gov Control Even N Kor not 100%

16. Capitalism is a form of freedom. a) Capitalism is linked to freedom since it is about individual choice . b) However, active debate over if capitalism promotes democracy ( China ) c) Most the world are capitalists, even “communist” countries. ( Cuba and North Korea are the big exceptions ) d) Note, China is a communist country, because the political party in power is the Communist Party , NOT because their economic system is communism.

17. Team Quiz (10 Points) Discuss the following questions with your group. Make sure everyone understands how to answer it. Once the quiz paper is passed out, everyone individually writes their own responses. No talking once we start writing. 1 paper will be graded from each group ( 10 points ). Prepare now. Ask Mr. Chiang only if no one in your team knows. When writing, use sentences! 1) What is capitalism? 2) What is communism? 3) What is socialism? Bonus Q) In what ways is America between 2 + 3 5 Reading/Film Qs Come From These Work Sections

18. Work #1a , Title “ Class Prep ” a) Name + Period: Cover + 3 edges b) Staple (bottom-top, stapes-in): Front: Constitution, Green Sheet Back: Plastic Bag 1) Each of you sign your name in your partner’s workbook under 1) to verify your first written sections and handouts look in order.

19. Career Fair Default role is intern, at which you will be paid $1280/mo (8/hr). Roles available: Banker: $4800/mo* ($30/hr, 8 per class) training req. Landlord: $3200/mo* ($20/hr, 6 per class) training req. *bonus possible based on performance Politician: $2400/mo ($15/hr, 3 per class) occas. brunch You will be fired if you can’t perform well!

20. Work #1a , Title “ Class Prep ” 2) Pick 1 of the 4 banks, they are all the same, you should care about speed + reliability in choosing. Write down the bank name AND the name of the two bankers . Make sure the banker gives you $280 (2x100, 2x20s, 2x10s, 2x5s, 10x1s) 3) Rent a desk, write down your landlord’s name AND rent price (rent due Friday) 4) Write down names of your REPs. Last, fill out new seating chart circulating: First Name, Last Initial (Bill L), Bank Name

21. One of the most valued scarce resources: Health Care (Remember that scarcity is not just for objects, but for skills/services too). 1) $600 billion of federal spending, $2.4 trillion spending if including private 2) Family of 4 can cost biz $12k, employee paying $3k of that

22. Health Insurance Only a fraction will get sick, so as long as the premiums will pay for that sick fraction and make a profit, the system works.

24. Notes #1b , Title: “ Heath Care Notes ” 1) Health Care System a) Capitalist System: Those can afford buy private b) Light Socialist System (US): Gov uses taxes to provide health care for the poor (kids+elderly) i) Medic a id : Gov pays for health care for poor kids, parents, & disabled ($200 billion/$1300) ii) Medi c are : Gov pays for health care for over 65 ($400 billion/$2600) 2) Full Socialist System : Gov runs health care (nationalized) OR gov pays for all (single payer) 3) Why health care cost rise (3) : a) longer + more unhealthy life, b) more + more expensive medical options, c) inefficiency/lack innovation

25. Notes #1b , Title: “ Economics Notes ” 4) Private Health Care Terms a) Premium : What you pay regardless of usage b) Co-pay : What you pay per visit c) Deductible : What you pay b4 insurance pays d) Coverage/exculsions : What will they cover e) HMO : Get all services from 1 comp (dr salaried) f) PPO :Get serv from list of private drs (dr fee based) g) POS : Mix of HMO/PPO h) Flex Account (125 Account) : Employer can set aside pre-tax dollars pay for health expenses (if you don’t use it up by end of year, it’s gone) i) Cobra : Lose job, temp pay to keep company h.c. (but pay full cost, so unemp often have no h.c.)

26. Notes #1b , Title: “ Heath Care Notes ” 5) Health Care Reform (3) : a) Control rising cost b) protect those with health care c) expand health care to uninsured (15% of US no H.C.) i) Public Option : Gov acts as health care provide, collecting premiums + paying for services (House bill has, Senate bill does not) ii) Abortion Issue : When gov helps ppl buy priv ins, can they have access to abortions? iii) Current Bill (in Conf Com, merging H+S Bill): a) All must get health care or pay fine, gov help pay for priv ins b) expand medicaid 150% + kids can stay in parents’ ins till 26 c) ins comps can’t deny coverage for pre-existing illnesses

27. Work #1b , “ Uninsured Debate ” 1) Read the 2 sides, choose 1 side, and write which you choose and explain why . 2) Then write down what your partner thinks ( include their name at the end ). 1 2 3 4 5 CON: Don’t cover 1) Cost the gov money or cost businesses and taxpayers money, reducing profits, thus hurting global competitiveness. 2) Gov need to focus 1 st on controlling h.c. costs. PRO: Covering everyone 1) Covering everyone means a healthier workforce, so increased worker productivity, which means better global competiveness. 2) It’s morally right thing, ppl are suffering.

28. Work #1c , “ Public Option Debate ” 1) Read the 2 sides, choose 1 side, and write which you choose and explain why . 2) Then write down what your partner thinks ( include their name at the end ). 1 2 3 4 5 CON: Gov Should Just Help Ppl Buy Priv H.C. 1) Priv H.C. can’t compete against gov, since if gov option is not profitable, gov will bail out 2) Gov will offer worse care, look at how the gov operates everywhere else PRO: Gov Needs to Provide Heath Care 1) Most states only have 1-2 major priv H.C. leading to little competition, gov can be like Post Of vs UPS/Fedex 2) Gov can offer cheaper care, b/c no profit focus

29. Work #1d , “ Lifestyle Debate ” 1) Read the 2 sides, choose 1 side, and write which you choose and explain why . 2) Then write down what your partner thinks ( include their name at the end ). 1 2 3 4 5 CON: Ppl should not have to pay for their lifestyle 1) To penalize ones lifestyle like eating is to take away their freedom 2) This is a slippery slope, should the gov have the power to dictate your life? PRO: Ppl with dangerous lifestyles pay more 1) Unlike genetic illnesses, ppl have a choice not to smoke or eat unhealthily, so they should pay for that choice 2) Healthier patients is cheaper H.C. for all

30. Work #1e , Title “ Global Health Care ” 1) Copy Source Title: Frontline 2…) Discuss questions on the board with a partner. Summarize your discussion ( include their name at the end ). Remember participation points are deducted if off task. 5 Reading/Film Qs Come From These Work Sections Time Bookmark: 00:00

31. Capitalist Grading System:

32. Communist Grading System: Everyone’s grade is pooled into a community grade, and you receive an average of it. Socialist Grading System: Students with good grades get taxed, so a % can be transferred to poor performing students.

33. Work #1f , “ Debate: Capitalism vs Socialism ” 1) Read the 2 sides, choose 1 side, and write which you choose and explain why . 2) Then write down what your partner thinks ( include their name at the end ). 1 2 3 4 5 CON: Favor Socialism 1) Too hard for poor to get ahead without help 2) If gov provides all your survival needs, you can then focus on your work 3) Private businesses can operate fine outside the zone of public services PRO: Favor Capitalism 1) Without the fear of failure and reward of success, humans don’t work hard 2) More profits you can keep, the harder you work 3) Individuals are faster and more clever than gov

34. Selling Simulation: “Friday Marketplace” Many people get experience earning money at a job, fewer people experience earning money through their own business. Have fun with it! Market: Each Friday’s Market Takes Place in 2 Rounds (1 Seller Round, 1 Buyer Round) 1) Sellers and buyers negotiate prices. 2) Take home all items you brought/bought at the end of the marketplace. 3) Carefully store your money and eventually deposit in bank. 4) Buyers beware, things sold “as is”, sellers persuade them of the utility of your items. No illegal, non-school appropriate, offensive, living, rotting, broken, or potentially messy items allowed.

35. Work # , Title “ Marketplace ” Before the Simulation: 1) Write down your company name. Also write it on the small sign (marketing: you will improve upon this over time) After the Simulation: 2) Record your profits at end of the simulation 3) Reflect on what can be done better to increase business next time, focus on what products are in demand (not mean you can or want to supply it) and how marketing can be improved next time (branding+advertising). Remember, buyer beware!

36. Work #1g , Title “ Closer Shareout ” Pick the 1 most important thing you learned today to share with your partner. 1) Write down a brief summary of what your partner said ( include their name ). 2) Rate 1-10 (1: confused, 10: too easy) how well you well you mastered today’s lesson.

37. Welcome to Economics Study of resource allocation: 1) What is produced? 2) How to produce it? 3) Who do we produce it for?

38. Homework: 1) Study today’s notes + work sections for a possible workbook quiz . 2) Design your checks due Friday. 3) Bring 1+ items for Friday Marketplace Workbook Check: If your name is called, drop off your workbook with Mr. Chiang ( if requested, points lost if your workbook is not turned in )