Economics (ppt)

Hi! My name is Mrs. Econ and today I am going to teach you about economics.

• 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.

• Economic

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?

• 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.
• She’ll use the rabbits’ skin to make a fur cap.
• The man’s family needs milk and eggs.

• Yes. I will trade my milk and eggs for your rabbits.

Let’s review voluntary exchange.

• Voluntary exchange helps both buyers and sellers.
• Voluntary exchange was used in the system of colonial trade. (barter)
• The colonists swapped goods that they had for things they needed.

• I’ll make your farming tools for 4 crates of apples.

• I’ll give you 4 crates of apples for farming tools.

• Both parties must benefit from the trade.

Trade was very important after the Revolutionary War ended.

• Under the Articles of Confederation, Congress had no power to make laws about trade.

• This turned out to be a big problem among the thirteen states.

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 state’s 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

• Automobiles

• 2. Can you name one of the most important industries trading between Canada and the U.S.A.?
• (It’s big in Japan and Korea, too.
• Your family probably uses this every day!)

• Basic Economics

Choices Cost You!

• We have to make economic choices every day.
• Some choices are easy because they’re not very expensive.
• Some choices are hard because they cost a lot of money.

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