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Do you bellwork and Pay your Wednesday and Friday bills in Freyonomy. Freyonomy Buying Opportunities. Phone upgrade $200. Freyonomy Buying Opportunities. Buying fabulous new jacket, $300. Freyonomy Buying Opportunities. Rock climbing/ spelunking trip $150. Freyonomy Buying Opportunities. - PowerPoint PPT Presentation
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DO YOU BELLWORK AND PAY YOUR WEDNESDAY AND FRIDAY BILLS IN FREYONOMY
FREYONOMY BUYING OPPORTUNITIES Phone upgrade $200
FREYONOMY BUYING OPPORTUNITIES Buying fabulous new jacket, $300
FREYONOMY BUYING OPPORTUNITIES Rock climbing/ spelunking trip $150
FREYONOMY BUYING OPPORTUNITIES Sky diving $150
FREYONOMY BUYING OPPORTUNITIES Horseback riding adventure $75 2 hour trip. Includes tip and gas.
FREYONOMY BUYING OPPORTUNITIES Going to see a local band $20
THE LAST FEW ECONOMIC CONCEPTS
Standard 1
CHALLENGE QUESTION #1 Why do you think property rights are
essential to the functioning of a market economy?
PRIVATE PROPERTY RIGHTSProperty rights- rights of individuals and
groups to own resources and businesses.
Why are they essential to a market economy???
They give producers ______ to create G/SIncentive
They give buyers ________ to purchase G/STrust
MIXED ECONOMY Mixed Economy- reflects characteristics
of both market and command economies
Ex. USM- Businesses can employ whoever they
wishM- Producers can produce whatever they
wishC- Libraries, Education, Postal Service is run
by the governmentC- Programs such as social security provide
for those who are too old to work
GLOBAL ECONOMY Global Economy- Economic interaction
that cross international borders
Ex. US trade with China
CHALLENGE QUESTION #2 In this country, most people work together in family groups
and go fishing and hunting to get the food they need to survive. The government does not direct these families. However, the government owns several coal mines. It decides how much coal to produce, how much to sell to foreign governments, and how much to keep to run the power plants it owns. The government is considering developing a state-run fish cannery and having citizens work in the factory to add to government revenues.
Traditional economy_______________________________ Command economy
CHALLENGE QUESTION #3 The government in this country provides free public
education through high school for everyone. It also runs a university system that competes with private colleges. Most of the land and all industries are owned by individuals or companies. The government also provides public goods and services such as interstates, the military, and medical insurance for the elderly.
Market economy___________________________________ Command economy
PRIVATIZE Privatize- To change an industry or
business from government control to private ownership
Ex. Getting rid of the US Postal Service and only having Fedex and UPS
NATIONALIZE Nationalize- to convert from private to
government ownership
Ex. 2001: In response to the September 11 attacks, the then-private airport security industry was nationalized and put under the authority of the Transportation Security Administration.
CHALLENGE QUESTION #4 Would a country that is converting from
a market economy to a command economy want to privatize or nationalize industries? Why?
CIRCULAR FLOW MODELProduct Market
(where you purchase G/S, mall, dentist
office)
Factor Market
(where businesses buy the factors of production; land,
labor, capital, entrepreneurship
Households
Businesses
$ income
$ consumer spending
$ business revenue
$ payments for labor
and resources
Resources sold (labor,
land)
Resources bought by businesses
Sell goods & services
Households buy
goods & services
Circular Flow Model- shows the flow of money, products, and resources that takes place in a market economy.
CIRCULAR FLOW MODEL
Circular Flow Model- shows the flow of money, products, and resources that takes place in a market economy.
The flow of ____________money
and __________ in the economy is circular!!!!!!resources
Who are the main decision makers in a circular flow model? Businesses and households