How do resources, products, and trade affectaffect a country’s standard

of living?

Standard of living:

A level of material comfort as measured by the goods, services,

and luxuries available to an individual, group, or nation.

1. People around the world use resources to satisfy their wants and needs.

2. The quality and quantity of productive resources varies in different countries.

3. Countries seek trading relationships with other countries to increase the number of goods and services available to people in their own country.

4. People and countries exchange goods and services voluntarily because they expect to be better off after the exchange.

You are the government of a country. You must use the

productive resources that you are given to satisfy the needsneeds

and wantswants of your citizens.

1. You must produce food, clothing, shelter, businesses, and education in order to satisfy the needs and wants of your people.

2. Each time your country makes a trade, you must record what you gave up, what you gained, and the number of the country that you traded with. Record your trade activity on the sheet provided.

3. You can only use materials provided in the 7 country bags.

4. Complete the group processing sheet for your table.

Embargo- an official ban on trade or other commercial activity with a particular country : an embargo on grain sales | the oil embargo of 1973. ･ an official prohibition on any activity

When one country announces that it will no longer trade with another country in order to isolate the country and cause problems with the country’s economy (usually during political disputes).

Examples: An embargo was placed on South Africa (Apartheid)OPEC stopping all sales to countries that supported Israel in the 1973 Arab-Israeli war.

Natural resources:Natural resources: naturally occuring in the earth’s

surface.

Capital resources: those things used to make things

Human resources: human labor•

bartering: a system in which goods and services are exchanged instead of using cash as a payment in a traditional economy.

self-sufficient: able to produce all the goods and services the country needs.

specialization:specialization: products a country makes best products a country makes best and that are in demand on the world market.and that are in demand on the world market.

quota: Sets a specific amount or number of a

particular product that can be imported or acquired in a given period.

1.In what ways do the products differ?

2.What might be a reason there was such wide variation in the way countries produced their final products?

1. People around the world use resources to satisfy their wants and needs.

2. The quality and quantity of productive resources varies in different countries.

3. Countries seek trading relationships with other countries to increase the number of goods and services available to people in their own country.

4. People and countries exchange goods and services voluntarily because they expect to be better off after the exchange.

Ways to Classify Economies

Ways to Classify Economies

Ask the question:How are decisionsdecisions about production made in the

economy?

Decisions are made by the market.Consumers and producers make decisions.

The government is making decisions along with the market.

Combination of public and private enterprise.

Decisions are made the government.

Another Way to Classify Economic Systems

Another Way to Classify Economic Systems

Ask the questions: 1. Who owns the means of production?

2. Who determines prices?