Economics Text: “ OUR WORLD TODAY”

1. EconomicsText: “OUR WORLD TODAY” 6th Grade Social Studies Mrs. Woodhouse Modified & Edited by Harry C. Ferrell (for Classroom use only)

2. What is Economics? $$$$$$$$$$ • The process by which the needs of the people are met. • It deals with buying and selling. • It is based on the principle of value. • Value is the price you place on goods and services. • Strong economies are characterized by having good purchasing power and a balanced distribution of supply and demand.

3. The Consumer Consumers are the driving force of any country’s economy. People work, earn salaries, pay bills, and buy goods and services. A stable economy relies on consumer purchasing power. How do you contribute to your economy?

4. Goods are manufactured (made) for the consumer (buyer). Goods are things which can be touched and felt such as groceries, toys, computer, etc….. Services are things people do for others such as waiting tables, carrying bags, doctors, lawyers, bankers, etc…. Services are provided by people who provide a specific skill which others are willing to pay for. Goods and Services A TV is a “good”, TV repair guy is providing a “service”.

5. What influences economic activities? • Location, physical features, transportation, government policies, and natural resources all play a role in how a nation’s economic system develops. • While landforms such as rivers, bays, and other water ways can help move goods and products more easily; Mountains, swamps, and deserts create problems transporting goods.

6. Types of Economic Systems (p.32) • Traditional Economies – are based on cultural needs. Skills are passed down from parent to children. Agriculture is a major source of production. • Command Economies – are government owned and run economic systems. Example Communism. • Market Economies – are based on supply and demand. Free-enterprise allows people to choose jobs, create their own business, set prices. • Mixed Economies – most countries have this type of economy. A mix of all types.

7. Each product travels through stages or categories of industry before it arrives in your home. (p. 32)

8. SCARCITY • Scarcity is the condition of not being able to have goods and services wanted. • Scarcity exists when resources do not exist in the amount needed for all who desire it to use it. A water scarcity in India.

9. Economic growth has everything to do with the stability of a country. This graph shows what economies in the world will look like in the future. How does literacy rate, life expectancy and technology affect the economic stability of a country? What is stability? http://www.thepicky.com/images/2007/07/BRIC_Largest_Economies_in_2050.jpg

10. World leaders meet often to discuss economic needs of countries because they know it will help keep the peace. Strong, stable economies provide citizens with the resources they need to live their lives. Leaders of developed countries help poorer countries by giving loans, & developing trading industries with them.

11. Technology improves economies by raising the quality of the product or service. When developing countries begin using more technology, they begin making more money. This is because it tends to increase production, providing more jobs, and raising the purchasing power of the people.

12. The Semi-arid Tropics (SAT) includes India and Africa. www.icrisat.org/.../background.html

13. The Green Revolution of India Before India’s Green Revolution, India struggled to feed its population. Leaders invited countries with knowledge about farming & technology to help India develop ways to feed its people. The Green Revolution is still going on. Punjab, India today 

14. Things to Remember…….. • People place value on resources based on needs & availability. • Economics is the study of how resources are distributed & how money is spent. • Meeting the needs of the people is what drives the economy of the country. • Geography & Climate plays a roll in production and distribution.