Kyla Collins Sost 316 Due: 9/17/14 Economics

What is the most important thing to know about this topic?

The most important thing to know about economics would first be the definition of economics. How
economics work would also be really important to know. Since social studies is made up largely of
history, economics throughout history is something that could be covered. Main topics of economics
throughout history which should be covered are the following: communism, socialism, capitalism, and
NAFTA.
What is economics? Economics, as defined by investopedia, is a social science that studies how
individuals, governments, firms and nations make choices on allocating scarce resources to satisfy their
unlimited wants. Economics can generally be broken down into: macroeconomics, which concentrates
on the behavior of the aggregate economy; and microeconomics, which focuses on individual
consumers. A much simpler definition from Merriam-Webster states that economics is a social
science concerned chiefly with description and analysis of the production, distribution, and consumption
of goods and services or a science concerned with the process or system by which goods and services
are produced, sold, and bought."
How do we measure economics?
The economics of a country is measured primarily by the GDP (Gross Domestic Product). GDP represents
the total dollar value of all goods and services produced over a specific time period - you can think of it
as the size of the economy. GDP is typically measured year to year. Measuring GDP, at its most basic, is a
calculation which can be done in one of two ways: either by adding up what everyone earned in a year
(income approach), or by adding up what everyone spent (expenditure method).
Economics Throughout History Communism
Communism, also known as a command system, is an economic system where the government owns
most of the factors of production and decides the allocation of resources and what products and
services will be provided. The most important originators of communist doctrine were Karl Marx and
Frederick Engels. They wanted to end the exploitation of the masses by the few. The capitalist system at
that time required workers to work under harsh and dangerous conditions for little pay. The end goal of
communism was to eliminate class distinctions among people, where everyone shared equally in the
proceeds of society, when government would no longer be needed. Communist countries, decided on a
centrally planned economy (also known as command economy or communism). The centrally planned
economy has the following major attributes: The government owns all means of production, which is
managed by employees of the state. These employees operated under party-appointed economic
planners, who set output targets in prices and frequently interfered with the operations to satisfy
personal or party desires. And because communist economies are not efficient and because of the
Communist Party's desire to retain power, most economic resources were devoted to industrialization
and to the military, depriving consumers of food and other necessary products, causing intense
competition for these limited necessities, where many people had to wait in long lines for common
consumer goods, such as toilet paper. Emphasis on the country's self-reliance, discouraging
international trade and investment. Although the purpose of communism was to serve the needs of the
proletariat, communist governments simply became repressive regimes that exploited their people to
aggrandize their own power, exploiting the masses even more so than the capitalists.
Capitalism
Adam Smith, a Scottish philosopher, set down many of the main principles of capitalism. Under
capitalism (market system), each individual or business works in its own interest and maximizes its own
profit based on its decisions. A market economy is one where the allocation of resources and the trading
of goods and services are through the decentralized decisions of many firms and households. Prices and
the willingness of the market to pay those prices determine economic output, which, in turn,
determines the allocation of resources. The essential characteristics of capitalism are that: the factors of
production are privately owned; economic transactions take place in markets, where buyers and sellers
interact; businesses and employees are free to pursue their own self-interest; The main purpose of the
government in regard to the economy is to promote free markets, keep inflation low and steady, protect
the rights of private property, and to guarantee contracts.

Socialism
The definition of socialism varies widely, but it can accurately be described as an economic system
between both communism and capitalism. Like communism, socialism seeks to redistribute the wealth
more fairly by the communal ownership of natural resources and major industries, such as banking and
public utilities. Socialists also seek to nationalize monopolies, which greatly enrich their owners at the
expense of the proletariat. However, unlike communism, most small or nonessential enterprises would
remain privately owned. Also unlike the Communists, most socialists do not advocate violence or force
to achieve their economic system. Socialism is also referred to as common ownership. This means the
resources of the world being owned in common by the entire global population.
NAFTA
NAFTA (the North American Free Trade Agreement) is a trilateral free-trade deal that came into force in
January 1994, signed by U.S. president Bill Clinton, Mexican president Carlos Salinas, and Canadian
Prime Minister Jean Chrtien. The central thrust of the agreement is to eliminate most tariffs on
products traded among the United States, Mexico, and Canada. The terms of the agreement called for
these tariffs to be phased out gradually, and the final aspects of the deal weren't fully implemented until
January 1, 2008. The deal swept away import tariffs in several industries: agriculture was a major focus,
but tariffs were also reduced on items like textiles and automobiles. NAFTA also implemented
intellectual-property protections, established dispute-resolution mechanisms, and set up regional labor
and environmental safeguards, though some critics now lobby for stronger measures on this front.
NAFTA has helped boost intraregional trade between Canada, Mexico, and the United States, but has
fallen short of generating the jobs and the deeper regional economic integration. Trade relations have
broadened substantially, and U.S. manufacturers created supply chains across North America that have
made companies more globally competitive.


Key Vocabulary
Economics
Macroeconomics
Microeconomics
Production
Distribution
Consumption
Goods
Services
GDP
Renewable resource
Non-renewable resource
Communism
Karl Marx
Frederick Engels
Proletariat
Bourgeoisie
Centrally planned economy
Command economy
Capitalism
Adam Smith
Market system
Pure capitalism
Consumer sovereignty
Socialism
Monopolies
NAFTA



Lesson Plan Resources
1. Teachers Pay Teachers http://www.teacherspayteachers.com
http://www.teacherspayteachers.com/Product/Economics-Quick-Guide-662176 I really liked this one. It
is a basic overview of economics and breaks it up so it can be better understood. Since economics is
such a broad topic, this would be a good source to guide teachers toward a lesson. It would also make a
good study guide for students.
2. Instructor Web http://www.instructorweb.com/resources/economics.asp
3. Money Instructor http://www.moneyinstructor.com/elementary.asp
4. Scholastic
http://www.scholastic.com/browse/search/teacherautoComplete=1&?query=economics&as_values_02
914=&channelOnly=true
5. Business Schools http://www.bschool.com/little-entrepreneurs-business-for-kids/
Technology Resources
1. Online Stock game http://www.smartstocks.com/
2. Currency Converter http://www.oanda.com/currency/converter/
3. Online Entrepreneur Game
http://www.learn4good.com/games/tycoonbusiness/entrepreneurgame.htm
4. 6th Economics and Political Interaction Overview http://www.youtube.com/watch?v=OcEw7dWYo5I
5. Internet for Classrooms http://www.internet4classrooms.com/social_economics.htm