Economics

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Economics Mr. Kirby Clackamas High
School American Free Enterprise
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Learning Objectives

• North Clackamas School District Social Studies
  Priority Standards
• Econ 53. Describe characteristics of command,
  market, traditional, and mixed economies and how
  they affect jobs and standards of living.
• Econ 59. Demonstrate the skills and dispositions
  needed to be a critical consumer of information.

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We will be using Cornell Note Taking Format Today!

• Will will turn this notes in today for points!

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Lesson Daily Learning Target

• I Can define and explain in writing the
• following key Economic concepts
• Economic Freedom
• Competition
• Voluntary Exchange

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Rubric for Daily Exit TicketsK.I.M.
Vocabulary, H.O.T. Questions and Summary Paragraph
EXCEEDING 5 PROFICIENT 4 PROGRESSING 3.5 EMERGING 3
Your K.I.M. vocabulary is detailed and complete (including memory device). Critical thinking answers and summary paragraph are detailed, clear and accurate with specific supporting details in complete sentences. Your K.I.M. vocabulary is complete (including memory device). Critical thinking answers and summary paragraph are clear and accurate with specific supporting details in complete sentences. Your K.I.M. vocabulary is complete . (including memory device). Critical thinking answers and summary paragraph are accurate with minimum supporting details in complete sentences. Your K.I.M. vocabulary is complete sloppy, rushed.Critical thinking answers and summary paragraph are and accurate with little supporting details in complete sentences.
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• American Free Enterprise

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Features of American Free Enterprise

• Economic Freedom
• Competition
• Private Property
• Self-Interest
• Contracts
• Voluntary Exchange
• Profit Motive

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Economic Freedom

• Individuals work wherever they choose
• Businesses hire whomever they choose
• Government minimal intervention

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Competition

• Producers have an incentive to beat the
  competition
• Consumers benefit as a result

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Discussion Question 1Think of one way that each
fast food provider has tried to beat the
competition?
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Discussion Question 2 Why are the Buffalo
almost extinct and Cows are not?
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Private Property

• Individuals and businesses can buy and sell
  property and limit its use.

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Contracts

• Individuals and Businesses form written
  agreements that are legally binding.

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Self-Interest

• Consumers and businesses operate to their own
  benefit. Their decisions do not have to please
  the government, other consumers, or other
  producers.

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Voluntary Exchange

• Both consumers and producers gain from voluntary
  exchange of goods/services.

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Profit Motive

• Profit is a powerful incentive that leads
  entrepreneurs to accept the risk of failure.

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Taxes are what we pay for civilized society
Oliver Wendell Holmes Jr., 1904

• Discussion Question 3 Explain what this quote
  means

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Discussion 4 Brainstorm a ListWhat
services does the Government provide to the
American People?

• Public Works
• Medicaid/Medicare
• Disaster Relief
• Unemployment
• Welfare
• Police, Fire
• Education

• Roads
• Social Security
• Public Transportation
• Grants

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Why does the Government Produce Goods and
Services?

• Public goods a good/service that can be used by
  many at the same time without diminishing any one
  persons consumption it is difficult to exclude
  someone from the good.

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Examples
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The "free-rider" problem

• Why dont towns charge admission for 4th of July
  fireworks displays?

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Why does the Government Produce Goods and
Services?

• Externalities are defined as third party (or
  spill-over) effects arising from the production
  and/or consumption of goods and services for
  which no appropriate compensation is paid. 

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Examples of positive externalities

• a beautiful garden on a busy street
• the safer neighborhood for others that results
  from some residents hiring private security
  patrols

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Discussion 5 What is significant about this
picture? What does it tell you about private
property?
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Free-Rider

• Someone who would not pay for a service, but
  would get the benefits if it were a public good.

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Why is there pollution?
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Examples of negative externalities

• include an unmowed lawn in a suburban
  neighborhood, or automobile exhaust, or
  second-hand cigarette smoke.

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Externalities

• What are the externalities created? 
• Snowplowing
• A poker room
• Garbage Pickup
• Homelessness

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Broken Windows Theory
"One unrepaired broken window is a signal that no
one cares, and so breaking more windows costs
nothing."
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• Broken windows policing assumes that serious
  crime can be reduced by strongly enforcing minor
  crimes.
• The "broken window" theory suggests that
  neighborhood order strategies such as those
  listed below help to deter and reduce crime.
• Quick replacement of broken windows
• Prompt removal of abandoned vehicles
• Fast clean up of illegally dumped items, litter
  and spilled garbage
• Quick paint out of graffiti
• Finding (or building) better places for teens to
  gather than street corners
• Fresh paint on buildings
• Clean sidewalks and street gutters

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Discussion Question 6 Why does poverty exist
in the United States? What Safety nets exist?
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Public Goods that cannot be privately provided
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Why does the Government Produce Goods and
Services?

• Merit goods goods/services that have a social
  value over and above their utility for the
  individual consumer.

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Summary Paragraph Question What are the
benefits of having a good school in your
community?
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Problem Solving Activity 5 Competing for
Costumers using Price Point Advertising THIS
ASSIGNMENT MUST BE DONE ALONE!

• Create a one page newspaper or magazine
  Advertisement for three competing businesses or
  products. (pizza, fast food, shoes, cars)
• Your advertisements must be creative, colored and
  shaded with a slogan and a Price Point (special
  price, deal, bargain-two for the price of one,
  ½ off etc.)
• Remember competition is good for customers and
  ultimately brings the price down for consumers
  because they are competing for your and my
  dollars!

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Price Point Advertising Rubric
EXCEEDING 5 PROFICIENT 4 PROGRESSING 3.5 EMERGING 3
Excellent- final draft, quality. Very creative, all components present including colored/shaded Advertisements (3) , information and price . New York Here a Come! Good- final draft, quality. Creative, all components present including colored/shaded Ads (3) , detailed information. Downtown Portland Here I come! Good - final draft quality- all components present in your three Advertisements. Currently working my way up as a delivery person O.K.-A draft-all components present including 3 Advertisements, Looks like a rough draft effort Bare minimum Looking for Work!