Reading Essentials and Note-Taking Guide - Weebly

Reading Essentials and Note-Taking Guide

STUDENT WORKBOOK

To the Student

Economics: Principles and Practices Reading Essentials and Note-Taking Guide is designed to help you use recognized reading strategies to improve your reading-for-information skills. For each section of the student textbook, you are alerted to key content. Then, you are asked to draw from prior knowledge, organize your thoughts with a graphic organizer, and follow a process to read and understand the text. The Reading Essentials and Note-Taking Guide was prepared to help you get more from your textbook by reading with a purpose.

Copyright ? by The McGraw-Hill Companies, Inc. All rights reserved. Permission is granted to reproduce the material contained herein on the condition that such material be reproduced only for classroom use; be provided to students, teachers, and families without charge; and be used solely in conjunction with the Economics: Principles and Practices program. Any other reproduction, for sale or other use, is expressly prohibited. Send all inquiries to: Glencoe/McGraw-Hill 8787 Orion Place Columbus, OH 43240-4027 ISBN: 978-0-07-878593-1 MHID: 0-07-878593-6 Printed in the United States of America 1 2 3 4 5 6 7 8 9 10 009 10 09 08 07

Table of Contents

Chapter 1: What is Economics? Section 1: Scarcity and the Science of Economics ...........................................1 Section 2: Basic Economic Concepts ................................................................4 Section 3: Economic Choices and Decision Making ........................................7

Chapter 2: Economic Systems and Decision Making Section 1: Economic Systems ..........................................................................10 Section 2: Evaluating Economic Performance ................................................13 Section 3: American Free Enterprise...............................................................16

Chapter 3: Business Organizations Section 1: Forms of Business Organization....................................................19 Section 2: Business Growth and Expansion...................................................22 Section 3: Nonprofit Organizations.................................................................25

Chapter 4: Demand Section 1: What Is Demand? ...........................................................................28 Section 2: Factors Affecting Demand..............................................................31 Section 3: Elasticity of Demand ......................................................................34

Chapter 5 Supply Section 1: What is Supply? ..............................................................................37 Section 2: The Theory of Production..............................................................40 Section 3: Cost, Revenue, and Profit Maximization........................................43

Chapter 6: Prices and Decision Making Section 1: Prices as Signals .............................................................................46 Section 2: The Price System at Work ..............................................................49 Section 3: Social Goals and Market Efficiency ............................................... 52

Chapter 7: Market Structures Section 1: Competition and Market Structures...............................................55 Section 2: Market Failures ...............................................................................58 Section 3: The Role of Government................................................................61

Chapter 8: Employment, Labor, and Wages Section 1: The Labor Movement .....................................................................64 Section 2: Wages and Labor Disputes.............................................................67 Section 3: Employment Trends and Issues.....................................................70

Chapter 9: Sources of Government Revenue Section 1: The Economics of Taxation............................................................73 Section 2: Federal, State, and Local Revenue Systems ...................................76 Section 3: Current Tax Issues and Reforms....................................................79

Chapter 10: Government Spending Section 1: The Economics of Government Spending.....................................82 Section 2: Federal, State, and Local Government Expenditures ....................85 Section 3: Deficits, Surpluses, and the National Debt ...................................88

iii

Chapter 11: Financial Markets Section 1: Savings and the Financial System..................................................91 Section 2: Financial Assets and Their Markets ............................................... 94 Section 3: Investing in Equities and Options .................................................97 Chapter 12: Macroeconomic Performance Section 1: Measuring the Nation's Output and Income .............................. 100 Section 2: Population and Economic Growth ............................................. 103 Section 3: Poverty and the Distribution of Income .................................... 106 Chapter 13: Economic Instability Section 1: Business Cycles and Fluctuations ...............................................109 Section 2: Inflation .......................................................................................112 Section 3: Unemployment ............................................................................115 Chapter 14: Money, Banking, and the Fed Section 1: The Evolution, Functions, and Characteristics of Money .......... 118 Section 2: The Development of Modern Banking........................................ 121 Section 3: The Federal Reserve System and Monetary Policy .................... 124 Chapter 15: Economic Stabilization Policies Section 1: Macroeconomic Equilibrium ........................................................127 Section 2: Stabilization Policies ...................................................................129 Section 3: Economics and Politics ...............................................................132 Chapter 16: International Trade Section 1: Absolute and Comparative Advantage ....................................... 135 Section 2: Barriers to International Trade .................................................... 138 Section 3: Foreign Exchange and Trade Deficits.......................................... 141 Chapter 17: Developing Countries Section 1: Economic Development ..............................................................144 Section 2: Achieving Economic Development .............................................. 147 Section 3: The Transition to Capitalism........................................................150 Chapter 18: Global Economic Challenges Section 1: Globalization: Characteristics and Trends ................................... 153 Section 2: Global Problems and Economic Incentives ............................... 156 Section 3: Applying the Economic Way of Thinking ................................... 159

iv

Chapter 1, Section 1 (Pages 5?10)

Scarcity and the Science of Economics

As you read pages 5?10 in your textbook, complete the graphic organizer below by listing and describing the three economic choices every society must make.

Economic Choices

Copyright ? by The McGraw-Hill Companies, Inc.

The Fundamental Economic Problem (page 6)

Label the following items as needs, wants, or resources. 1. Shelter

2. Designer clothing

3. Time

4. Groceries

5. Gas

Scarcity is the basic economic problem of how to meet people's seemingly unlimited wants with scarce resources. This basic problem affects almost every economic decision people make as buyers and as sellers. Consider how people seem to always want more than they have. People's wants are unlimited but societies' resources are limited. Economics is the social science that studies how people satisfy seemingly unlimited and competing wants with the careful use of scarce resources.

When economists talk about people's unlimited wants, they are making a distinction between what people want and what they need. In economics, a want is something we would like to have but that is not necessary for survival, like a specific sneaker or particular type of house. A need, on the other hand, is a basic requirement for survival, such as food, clothing, and shelter.

Since all resources are limited, everything that meets a need or a want has a cost. Even when it seems as if something is "free," someone has to pay to produce it. That cost is ultimately passed on to consumers. Economists use the term TINSTAAFL to describe this concept. It means There Is No Such Thing As A Free Lunch.

Chapter 1, Section 1

1

 ................
................

In order to avoid copyright disputes, this page is only a partial summary.

Google Online Preview   Download