Vocabulary Activity 19

Transcription

1 Vocabulary Activity 19 The American Economy DIRECTIONS: Write the term from the box that matches each definition on the blanks below. capital entrepreneurs interdependence profit competition factors of production labor services consumerism GDP productivity specialization discretionary goods 1. physical and mental talents people bring to the production of goods and services 2. struggle between buyers and sellers for the best products at the lowest price 3. work performed for someone else 4. type of income left over after purchasing necessities that can be used to satisfy wants 5. innovative people who start new businesses, introduce products, and improve management techniques 6. concentration on producing a particular type of goods and services 7. tangible products like CDs and cars that we use to satisfy our wants and needs 8. amount of money left after the costs of production have been paid 9. measure of goods produced by the labor and resources needed to produce them 10. four types of resources (natural resources, labor, capital, and entrepreneurs) needed to produce goods and services 11. a movement to educate buyers and teach them how to demand better and safer products 12. reliance on others, and others reliance on us for the goods and services we consume 13. the tools, machinery, and buildings used to make other products 14. total value, in dollars, of all the final goods and services produced CHAPTER 19 19

2 Economics Activity 19 How Much Is Your Labor Worth? Did you know that you are a factor of production? When you get a job, you become one of the human resources who helps produce the economy s goods and services. As part of the factor market, you sell your time and skills in return for pay. The amount of your pay will have a lot to do with the skills you can offer an employer and the market for those skills. To get a job, you must have skills that employers need. The more useful skills you have and the higher the quality of those skills, the better your chances are for obtaining a high salary. Competition in the labor market will influence your salary as well. If you have high-level skills that relatively few others have, then employers will likely pay more to obtain your services. DIRECTIONS: The table below shows the relationship between average earnings, educational degree, and gender in the United States. Study the table and answer the following questions on a separate sheet of paper. CHAPTER 19 Earnings by Highest Degree Earned: 2000 High School Associate s Bachelor s Master s Professional Gender Graduate Degree Degree Degree Degree Male $32,020 $42,546 $63,216 $76,340 $110,517 Female $19,269 $25,590 $35,083 $45,517 $ 61,556 Source: U.S. Census Bureau 1. What kind of factor of production are you? 2. What do you provide to your employer in return for your pay? 3. What are the average incomes for men and for women who have a bachelor s degree? 4. From the table, summarize the relationship between educational degree and average earnings. 5. Summarize the relationship between gender and earnings. 6. CRITICAL THINKING ACTIVITY Identify two jobs that you would like to have. Find the Occupational Outlook Handbook at a library or online. Look up the two jobs. Create a table to compare features of the jobs. Include earnings, job outlook, qualifications, and key points about the nature of the job. Which job do you think you would like most? Why? 25

3 Reteaching Activity 19 The American Economy The economic system of the United States is based on capitalism and free enterprise. Americans want a minimum of government interference in their day-to-day consumer decisions. Four factors of production natural resources, labor, capital, and entrepreneurs give society the means to produce both goods and services. According to Nobel Prize-winning economist Milton Friedman: Competition, and the ability of consumers, workers, and businesspeople to decide their own best interests determine prices, wages, and profits. DIRECTIONS: Creating a Web Diagram There are six categories of characteristics of capitalism. Use this web diagram to organize these characteristics. Write the letter of each description in the appropriate circle below. CHAPTER 19 Competition Profit Motive Markets Economic Freedom Capitalism Voluntary Exchange Private Property Rights A. Act of buyers and sellers freely venturing into market transactions B. Individuals accepting the consequences of their economic decisions C. The freedom to risk wealth in a business venture D. Going to work and selling an individual s labor E. Creating an incentive to work, save, and invest F. Causing efficient production, higher quality products, and more satisfied customers G. Purchasing goods and services H. Having the choice to make your own economic decisions I. Encouraging people and businesses to improve their own material wealth J. The struggle between sellers to keep production costs low and the quality of goods high K The right to own and use property as a person chooses L. Both parties believe that they will be better off afterward than before M. Places where the price of goods and services are determined and exchanges occur 27

4 Guided Reading Activity 19 1 Economic Resources When reading this section, mentally visualize what is being discussed. This will help you remember what you read. 1. Identifying What are the four factors of production? 2. Defining What is the definition of labor? 3. Classifying Under what factor of production would you classify a bulldozer? Oil deposits? SECTION Describing What does Gross Domestic Product (GDP) measure? 5. Identifying What do economists count when computing GDP? 6. Explaining Why is GDP an important measure of our standard of living? 7. Analyzing What does GDP not measure? 31

5 Guided Reading Activity 19 2 Economic Activity and Productivity Create a web diagram for this section. Write the main idea in the center circle and connect supporting concepts to it. Use your completed diagram as a quick reference guide to study for quizzes and tests. 1. Identifying What does the circular flow diagram on page 429 demonstrate? 2. Identifying What is a product market? SECTION Comparing How does a product market differ from a factor market? 4. Explaining Why is economic growth important? 5. Summarizing How do businesses increase productivity? 6. Defining What is specialization? 7. Concluding How is division of labor a form of specialization? 8. Analyzing How does economic interdependence affect productivity? 32

6 Guided Reading Activity 19 3 Capitalism and Free Enterprise As you read, keep yourself on task. Stop now and again and quickly review what you have just read. Then continue reading. 1. Defining The American economy is based on both capitalism and free enterprise. What does this mean? 2. Evaluating If an entrepreneur s business fails, will the government help him or her recover the financial losses? Why or why not? 3. Summarizing What incentives does private property give people? SECTION Identifying What is the result of competition between sellers? 5. Summarizing Who benefits when you buy something you or the seller? 6. Analyzing Why is Adam Smith an important figure in the study of economics? 7. Explaining What is laissez-faire economics? 33

7 Guided Reading Activity 19 4 The Economy and You Transcribe your handwritten notes from reading and lectures onto a computer file. This is a good way to review your notes. If you read something that does not make sense, reread that part of the textbook. 1. Explaining How has consumerism led to better consumer rights? 2. Listing What are the five major rights of consumers? SECTION Summarizing What is the purpose of better business bureaus? 4. Listing What responsibilities do consumers have? 5. Defining What is discretionary income? 6. Explaining What is one way to reach long-term purchasing goals? 7. Concluding Why is it beneficial to save money for the future? 34