Economics (ppt)

Economics (ppt)

Economic Understandings SS4E1 Use the basic concepts of trade, opportunity cost, specialization, voluntary exchange, productivity, and price incentives to illustrate historical events. Hi! My name is Mrs. Econ and today I am going to teach you about economics.

Economics is the study of the making, buying, and selling of goods or services. Barter-Trade When the 13 colonies were founded, some people were good hunters, some were craftsmen, and some were farmers.

In order to get things that a person needed to survive, one person might have traded one item for another item. This is known as voluntary exchange. I have 5 rabbits to trade. Want

to trade with me? What is voluntary exchange? Yes. I will trade my milk and eggs for your rabbits.

People will trade if they both get something from it. The lady trades a jug of milk and 3 eggs for 5 rabbits. She needs the rabbits to make rabbit stew. Shell use the rabbits skin to make a fur cap. The mans family needs milk and eggs. Lets review voluntary exchange.

Ill make your farming tools for 4 crates of apples. Ill give you 4 crates of apples for farming tools.

Voluntary exchange helps both buyers and sellers. Both parties Voluntary exchange must benefit was used in the from trade. systemthe

of colonial trade. (barter) The colonists swapped goods that they had for things they needed. Trade was very important after the Revolutionary War ended. Under the out Articles Confederation, Congress

This turned to beof a big problem among the had nostates. power to make laws about trade. thirteen How was this a problem? Each state wanted to control their own trade. They tried to make big profits. Each state made their own money. Sometimes they would not accept another states money.

Most foreign countries would not trade with the United States because the 13 states could not get along with each other. How did they solve these economic problems? Thanks goodness they wrote the U.S. Constitution! The Constitution says that

the federal government controls trade between the states and with foreign countries. The state government controls trade within its own state. 1. Who is the United States Number 1 trading partner? Canada

2. Can you name one of the most important industries trading between Canada and the U.S.A.? (Its big in Japan and Korea, too. Your family probably uses this every day!) Automobiles Basic Economics $

Choices Cost You! $ We have to make economic choices every day. Some choices are easy because theyre not very expensive. Some choices are hard because they cost a lot of money.

$ $ $ $ Examples of Daily Choices (Cost a small amount of money) Examples of Hard Choices (Involves a lot of money) Opportunity Cost

Opportunity cost is the value of what is given up when a choice is made. Every time you make a choice, you give up something else. You might decide to watch TV instead of washing a neighbors car to make some money. Your opportunity cost is the money you could have made washing the car! Making Choices

All choices require giving up something A farmer decides to grow corn instead of tomatoes. His opportunity cost is the tomatoes he could have grown. Making Choices All choices require giving up something

A girl decides to babysit instead of going roller skating with her friends. Her opportunity cost is the time she could have had with her friends roller skating. Making Choices

All choices require giving up something A dad decides to watch his sons soccer game instead of earning some extra money fixing the neighbors computer. His opportunity cost is the money he could have earned fixing the

computer. Oh Give Me a Choice (Tune: Home on the Range) Lets sing a song about choice and opportunity cost. Oh give me a choice, Oh, a difficult choice, And Ill think about what I could use. Ill have to decide, With my eyes open wide, What Ill give up and what I will choose.

Opportunity cost! Its the thing you give up when you choose. Its the price that is paid When a choice must be made. Its the thing that I surely will lose. Leaders throughout history have had to make choices that involved opportunity cost. The kings and queens decided to spend money to search for a short cut to Asia. They

paid for ships, supplies, and manpower. Their opportunity cost was the money that could have be used for important things at home or to trade with other countries closer to home. How do price incentives affect peoples behavior and choices?

A price incentive is used to affect peoples buying behavior. Incentives can motivate people to take action! SALE An offer for Buy one pizza, get one TODAY free, is a price incentive. A sale where items are price is a price incentive. 50% off

Colonial Choices The behavior and choices of people in colonial times were affected by price incentives, too!

What would make them the most money? That extra money was an incentive for colonists to grow, make, or build more! Specialization in the New England Colonial Region People in New England specialized in: fishing lumber shipbuilding

New England had harbors that made it a shipping trade center. Specialization in the Mid-Atlantic Colonial Region The Mid-Atlantic colonies had rich farmland. Farmers produced large harvests of: wheat rye

corn They also raised livestock. They worked with iron (blacksmith) Specialization in the Southern Colonial Region

Agriculture was king in the South. There were small farms and big plantations. It was profitable to grow: tobacco indigo rice cotton Slave labor was used to plant and harvest crops. Productivity during the late th th 18 and early 19 centuries

Technology Rocks! Talented Americans developed new inventions that changed our lives! There were many technological advancements! A few important examples include: Spinning machines &

Sewing machines Spinning machines made cloth very quickly. Sewing machines could make clothes quickly. Cotton Gin .

Eli Whitneys cotton gin was a simple machine that separated seeds from the cotton fibers. It increased the production of cotton tremendously. Cotton became the most important crop in the South. More slaves were needed to work in the cotton fields. Telegraph

Samuel Morses telegraph was the first method of long-distance communication. Americans and businesses could finally communicate over long distances! Steamboat Robert Fultons steamboat allowed people and goods to travel much faster along the nations rivers and canals. Steam Locomotives

Steam locomotives helped Americans move goods and people across the country. Canals Canals paved new paths for steamboats. People and goods traveled faster from lakes, rivers and the ocean through canals. Railroads

Railroads made new paths for trains. Goods and people could travel from place to place much faster. Productivity increased with these new inventions: Manufacturing - Factories Manufacturing is the process of making goods using machinery.

Assembly Lines Assembly Line The assembly line is where products are put together as they pass down a line of equipment and workers. Mass Production Mass Production

Mass production is making goods in large amounts by machinery and special methods. This completes my lesson on economics! Economics is an important part of our lives. You use economics in many ways everyday. References

Text Information: 4th Grade Student Workbook: Section 4, Economic Understanding, Available, Copyright 2005, Carole Marsh/Gallopade International. Advanced Network and Services, Inc. The Economic Songbook: Old Tunes with an Economic Twist. Oh Give Me a Choice! Copyright 1997, Martha C. Hopkins. James Madison University Center for Economic Education.

Graphics Information: Microsoft Clip Gallery 3.0 (no sitations) #1 Free Clip Art. [Online Graphics]. Available www.1cli[ Copyright 1999 #1Free Clip Art

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