08/30/16 Homework – Due on Thursday

August 30, 2016

Complete 2 pages of Cornell notes for Chapter 4-1
from page 79-83.

Chapter 2, Section 1 and 2 Google Slides

August 29, 2016

Google Slides Requirements

1. Minimum size 24 font
2. Use bullets to present ideas
3. Presentation must be eye pleasing and colorful
4. Include a picture for every slide
5. Email an unlocked invitation for ko_charles@ausd.us with period, group#, names and topic in the subject field. Failure to do so with result in the loss of 5 points!
6. Include a real life example relevant to the facts of your topic.

Complete the Google Slides presentation for your assigned topic.
Due in class on Thursday for 20 points.

08/26/16 Homework

August 26, 2016

Copy and answer questions 1-16 on page 46-47 in Cornell format to review for the Chapter 1 & 2 Test on Tuesday.

The assignment is also due on Tuesday.

08/25/16 Homework

August 25, 2016


Copy and answer the following questions:

1. How does the government of North Korea intervene in its economy?
2. Where is the world’s most free market? Explain.
3. Why is China said to have a transitional economy?
4. What does it mean when an economy is being “privatized”?

Chapter 2: Economic Systems

Section 4: Modern Economies

Mixed Economic System

Why does it exist?
1. Market could not operate without some government intervention.
2. Government creates laws protecting property rights and enforcing contracts.
3. To give people incentives to invest in new products and create new ideas (copyright laws).
4. To promote and insist on competition in the market place in order to prevent monopolies from forming.

Government participates in the factor market by being a purchaser of labor, land, and capital.
In the product market, the government purchases goods and services. In addition, it provides roads, transportation, education, and recreation facilities.

Ways that government transfers money to businesses and individuals:
Social Security
Financial Aid
Food Stamps
Subsidies and tax breaks for businesses and individuals

Answer the following questions:
1. How does the government of North Korea intervene in its economy?
2. Where is the world’s most free market? Explain.
3. Why is China said to have a transitional economy?
4. What does it mean when an economy is being “privatized”?

Chapter 2, Section 2 and 3 Notes

August 25, 2016

Ch. 2: Economic Systems

Sec. 2: The Free Market

Roles of Each Factor in the Free Market Economy

Own the factors of production. Supply businesses with land, labor, and capital.
They are consumers of goods and services produced by businesses.
Pay taxes to government.

Use resources to produce products that would be placed in the market.
Turn raw materials (input) into products (output).
Employ individuals and transfers payment to them in the factor market.

Motivating force in the free market.
Most consumers will respond to the positive incentive of saving money.
Sellers have the incentive to make greater profit by increasing sales.

Regulating force of the free market.
Prevents the producer from overcharging consumers.
Causes more production to keep prices in control.
It increases the quality of the products.
It is the “Invisible Hand” of the marketplace.

Ch.2 Economic Systems

Sec. 3 Centrally Planned Economies

1. What are the characteristics of Communism?
A political system based on the concepts of socialism.
A violent revolution must occur to achieve a socialist society. The proletariat (workers) will revolt against the bourgeoisie (capitalists) and seize the factors of production. All property will be held in common.
The government controls all economic and political power.
Does not allow freedom of judgment and actions.

2. What are the characteristics of Socialism?
Socialist Society can be achieved by democratic means.
People have the control of the economic and political power.
People are allowed some degree of freedom for judgment and action.

3. What do communism and socialism have in common?
Both political systems’ main goal is to distribute wealth evenly throughout the society.
Government owns everything (all factors of production).
Economy is planned centrally by the government.

4. What are the effects of the problems that are associated with Centrally Planned Economies?
Guaranteed Employment
People have few incentives to work hard.
No incentives for workers to produce better products.
No reasons to innovate. It is illegal in centrally planned economies.

Government distributes a large share of physical capitals to heavy industries.
The producers of consumer goods were left with the opportunity cost of being left with lower quality resources to create their products.
Consumer good were scarce and also of low quality.

Inability to detect demand with sufficient accuracy.
During certain periods in the history of the Soviet Union, shortages were so common that one would wait hours in line just to buy basic consumer products such as shoes or bread.

May require a state which intervenes highly in people’s personal lives.
If the state directs all employment, then one’s career options may be more limited.
If goods are allocated by the state rather than by a market economy, citizens cannot, for example, move to another location without state permission because they would not be able to acquire food or housing in the new location, since those were not planned for.

08/24/16 Homework

August 24, 2016

Copy and answer questions 1-5 on page 38 to review Chapter 2-3.

08/23/16 Homework

August 23, 2016

Copy and answer questions 1-7 on page 32 in Cornell note format to review Chapter 2-2.


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