Economics (ppt)

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.

• $

• $

• $

• $

• $

• $

• Examples of Daily Choices
• (Cost a small amount of money)

• Examples of Hard Choices
• (Involves a lot of money)

Opportunity Cost

• Opportunity cost is the value of what is given up when a choice is made.
• Every time you make a choice, you give up something else.
• You might decide to watch TV instead of washing a neighbor’s car to make some money.
• Your opportunity cost is the money you could have made washing the car!

Making Choices All choices require giving up something

• A farmer decides to grow corn instead of tomatoes.

• His opportunity cost is the tomatoes he could have grown.