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CWI DMA. Please take out a piece of paper and complete the following: 1. Write down the vocabulary word and definition. 2. Choose ONE of these options and complete it. Draw a picture that illustrates/explains the vocabulary word. Rewrite the definition in your own words.
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CWI DMA Please take out a piece of paper and complete the following: 1. Write down the vocabulary word and definition. 2. Choose ONE of these options and complete it. • Draw a picture that illustrates/explains the vocabulary word. • Rewrite the definition in your own words. • Write a sentence that includes the term and the information from the definition. Decentralization • The dispersion of functions and powers – delegation of power from a central authority to local authorities. • The redistribution of population and industry from urban centers to outlying areas. Turn in this week’s DMAs
Today’s Agenda DMA/turn in Basic econ concepts
Basic Economic Concepts Info in red needs to be in your notes
Production Possibility Frontier (PPF) • How an economy can allocate its resources in order to achieve optimal output. • Helps countries specialize • Instead of each country producing all needed products.
Why is it beneficial for a country to specialize in a product or industry? Can you think of any examples?
Utility • Benefit a consumer receives from a given good / service. • Determines how you can get the most satisfaction out of your resources.
Utility What is the utility of your shoes? What is the utility of your family car?
Competition Monopolies • Industries in which the company: • Determines prices • Puts in barriers against competition. Oligopolies • Industries with few companies • Interdependent on each other.
Competition Perfect Competition • Many businesses competing with one another for consumer interest and profits.
Inflation • Prices for goods and services are rising, • Purchasing power is falling.
Inflation Think back to when you were a kid…how much did stuff cost? Inflation Calculator
Gross Domestic Product (GDP) • Value of all the goods and services produced. • It includes: • Consumption • Government purchases, • Investments • Exports • Minus imports. • Indicates economic health. • Measured annually.
GDP • Grab an envelope. 2. Match the countries with their GDPs. 3. Put the countries in order (from highest to lowest GDPs).
Exchange Rate • Expressed in another country's currency. • The rate at which one currency can be exchanged for another. • Currency calculator