Factors of production- Inputs into the production process. Outputs are finished products. The main factors are land, labor, capital, and entrepreneurship. Nick Wuensche Period 1
Land, labor, capital, and entrepreneurship are the factors that go into the production process. • Land- natural resources • Labor-the effort put into the process • Capital-what is required to start a business • Entrepreneurship-effort put into organizing labor Explanation
Economics and Scarcity Economics-the social science that analyzes the production, distribution, and consumption of goods and services. Scarcity-the state of being scarce or in short supply; shortage.
Explanation • Divided into two divisions: Microeconomics and Macroeconomics • Economics is anything that has to do with goods being produced, distributed, or consumed • Scarcity is when there is a finite amount of resources. Nature doesn’t provide as much as people want • Scarcity affects the production area of economics • When there are limited resources, we must control how much we produce, so we don’t run out
Capitalism By Sara Rowlands
Capitalism- A form of economic order characterized by private ownership of the means of production and the freedom of private owners to use, buy and sell their property or services on the market at voluntarily agreed prices and terms, with minimal or no interference from government • X
Explanation • economic system based on competition between businesses • Involves private ownership • Minimal government involvement • Agrees with laissez faire (belief that economies function best when there is no interference by government)
Wealthiest people or companies have all the power over others Everyone has fair chance of becoming successful and wealthy
Connection • Donald Trump is a famous capitalist • He purchases property at a low price, waits for the value of the property to go up, and then sells it • makes a large profit • He is often called a “self-made man" because he earns his own fortune with no or minimal government involvement
Debt: something, typically money, that is owed or due. • Collateral: something pledged as security for repayment of a loan, to be forfeited in the event of a default. Definition
Examples of debt: bonds, loans, etc. • For example: • Company might have to borrow $1 million for a piece of equipment • Debt of $1 million must be paid back to the creditor at a later date • Used as a method for making large purchases people/corporations are unable to afford under normal circumstances Explain Concept - Debt
Examples of collateral: if you got a mortgage, your collateral would be your house • If you stop making monthly house payments, lender can take possession of the home through a process called foreclosure • Not just mortgages: vehicle would be seized if you stop making car payments Explain Concept - Collateral
Debt = if you borrow a pencil from a friend, you owe them their pencil or a pencil that’s just as good back • Collateral = if you borrow a pencil from a friend, and they take a pen from you to make sure you give the pencil back. If you don’t give it back, they keep the pen. Connection
Needs and Wants Kendall O’Neill
Definition • Needs- of necessity; necessarily • Wants-to feel a need or a desire for; wish for
Explanation • Needs are things that are required for life (ex. Food and water) • Wants are extra items that make life easier (ex. Dishwasher) • For example if you live in Alaska you need a winter coat, but you want a Northface
The GDP By Natalie Carlin
The monetary value of all the finished goods and services produced within a country's borders in a specific time period. What is the GDP?
GDP = C + G + I + NX where: "C" is equal to all private consumption, or consumer spending, in a nation's economy "G" is the sum of government spending "I" is the sum of all the country's businesses spending on capital "NX" is the nation's total net exports, calculated as total exports minus total imports. (NX = Exports - Imports) A Simple Explanation… http://www.investopedia.com/video/play/what-is-gdp/
Thinking of a big animated monster named GDP that needs to eat CGI and NX to stay alive. (GDP=C+G+I) Remember it by…
Free Market Economy By: Rachel Millstein
Define Terms • A market economy based on supply and demand with little or no government control • An idealized form of a market economy where buyers and sellers are allowed to transact freely based on a mutual agreement on price without state intervention in the form of taxes, subsidies or regulation.
Explain Concept • The state government is not able to intervene with the citizens • All trading markets are under their own regulations and determine their own trading laws • The markets are able to enforce specific laws while maintaining under loose regulations • More freedom than any economy seen prior
Comparison Free Market Economy Freedomto do what you please or The Farmer’s MARKETsellsFREEfood
Stock Market and the DOW Jones Industrial Danielle Luftschein
DEFINITIONS • Stock market: the organized buying and selling of a company’s shares/stocks both over-the-counter and on the web. • DOW Jones Industrial: tracks the stock market for investors. The average of 30 significant stocks traded on the NYSE and NASDAQ
CONCEPT • Progress in the stock market is reflected by the DOW, so investors know what to invest in. The proceeds from the stock market are poured back into companies, which use the money to improve efficiency and productivity. • Many stock exchanges only sell stocks that meet trading criteria, such as a certain amount of money earned by the company per year.
Connections • The DOW is to the stock market as a corollary is to a theorem, in that the DOW can’t exist without the stock market. Yeahhh! I earned a penny!
Videos • http://www.investopedia.com/terms/s/stockmarket.asp
Global Economy By: Grace Laggan
Global Economy-Definition • Global economy is the economy of all the world’s nations and society combined to reflect the overall economic state of the world
Global Economy-Concept • Used to monitor the economic activity between countries, because each economy affects the other • Can be evaluated in many ways depending on the model used • Typically judged in monetary terms • The value of the economy can be represented in a specific currency such as the official value of the U.S. Dollar or Euro
Global Economy-Concept • All of the world’s economies combined • Often only includes human economic activities, but can also include the values of resources • Global Economy is exclusive to values of resources on planet earth so (for example) the value of mining on Mars would not be included in global economic value • Also does not include economic activities without a legal market like black market and drug trade
Connection • The globe is all the countries combined, and so is the global economy
Credit and Interest By Thomas Francis Kullmann
CREDIT- Confidence in a purchaser’s ability and intention to pay, displayed by entrusting the buyer with goods or services without immediate payment INTEREST-A sum paid or charged for the use of money or for borrowing money (such a sum expressed as a percentage of money borrowed to be paid over a period of time)
CREDIT CARDS Credit card issuers give credit cards to people as a system of payment based on the cardholder’s promise to pay for them. The issuer creates an account and grants a “line of credit” from which the cardholder can borrow.
CREDIT CARD INTEREST The main way in which credit card issuers generate revenue. Card issuers are normally banks or credit unions. The bank pays the cardholder and then charges the cardholder interest over the time the money remains borrowed.
Bank Credit Card Interest Money Cardholder Goods/Services Store