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=econ
omics&as_values_02914=&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