Exploring Agribusiness in a Free Enterprise System

Common Core/Next Generation Science Standards Addressed! RST. 6‐ 8. 2 - Determine the central ideas or conclusions of a text; provide an accurate summary of the text distinct from prior knowledge or opinions. (MS‐LS 1‐ 6) WHST. 6‐ 8. 1 - Write arguments to support claims with clear reasons and relevant evidence. (MSLS 2‐ 4) SL. 8. 1 - Engage effectively in a range of collaborative discussions (one‐on‐one, in groups, and teacher‐led) with diverse partners on grade 8 topics, texts, and issues, building on others’ ideas and expressing their own clearly. (MS‐LS 2‐ 2) SL. 8. 4 - Present claims and findings, emphasizing salient points in a focused, coherent manner with relevant evidence, sound valid reasoning, and well‐chosen details; use appropriate eye contact, adequate volume, and clear pronunciation. (MS‐LS 2‐ 2)

Agriculture, Food and Natural Resource Standards Addressed! CRP. 01. 03. Identify and act upon opportunities for professional and civic service at work and in the community. CRP. 01. 03. 02. a. Identify civic service opportunities in workplaces and the community (e. g. , organizations, fundraising, etc. ).

Bell Work

Interest Approach Designer clothes, food, nike shoes, diamond rings, your favorite music group’s compact disc, notebook for ag class. Make a list of your own wants and needs include the above items. We will discuss what items you consider to be needs and what items you consider to be wants.

Terms Agricultural economics Allocates Capitalism Communism Economics Fascism Free enterprise Free resources Needs Products Resources Scarcity Services Socialism Subsidies Wants

Economics The science that deals with the production, distribution, and consumption of wealth. There are three different components of economics: Scarcity 2. types of resources 3. wants and needs. 1.

1. Scarcity The situation where resources are lacking. Economics studies the way society allocates, or distributes, its scarce resources. Not all resources are scarce, those that are readily available are called free resources.

Scarcity vs. Shortage and scarcity are not the same. Scarcity exists as a result of limitations of a resource. A shortage is a temporary situation.

2. Types of Resources are items ready to use at any time. Resources considered factors of production include land, labor, capital, and management. These resources are used to make products and provide services.

Products and Services Products are the goods produced to meet the needs of customers. Services are activities provided to consumers for a fee.

3. Wants and Needs are things needed for daily living, food and shelter for example. Wants are things that are not necessary for daily living. The differentiation between wants and needs proves interesting, because the more people get, the more they want.

Needs vs Wants

3 Questions commonly asked in reference to economics What goods should be produced and how much of each? How should the goods be produced? Who should get what?

Six types of economic systems Traditional system, capitalism, socialism, fascism, communism and mixed economic system. The difference between each is the level of control by individuals versus by government.

Traditional System Is an economic system where things are done according to how they’ve been done in the past. Decisions are based on beliefs handed down for generations.

Capitalism An economic system where the individual owns the resources and can use their time and resources as they want. Government involvement is low, the individuals must be self-regulating. Private ownership allows for competition.

Socialism Is an economic system where the public has ownership of all productive resources. In this system, the government is responsible for making all of the production decisions. The state establishes prices, thus eliminating competition.

Fascism Individuals own the resources but produce goods as directed by the government. Individuals who support the government have more economic power than those who do not. This allows the government to have complete control over nearly all aspects of business.

Communism Is an economic system where one party controls all means of production. Private individuals have no control over resources. The government exercises complete control of the economy.

The American economy Characteristics of the free enterprise system. 1. little or no government control 2. freedom of enterprise 3. Freedom of choice 4. the right to own property, 5. profit incentive 6. chance for competition.

Government’s role in a free enterprise system is to regulate and protect the public while keeping the economy in balance. Individuals own and have choices over their resources, but must do so within the limits of the law.

Free Enterprise Free enterprise refers to an individual’s freedom to own and control production of resources.

Freedom of choice Americans have freedom of choice within the U. S. economic system. Freedom of choice means freedom to make decisions about what should be produced. However, government has set safety standards meant to protect consumers. The government also regulates utilities.

The right to own property Americans have the right to own private property including land, automobiles, and more. There is no limit on how much you can own outside your own budget limitations. Profits you make as a result of your private property are yours to keep after reasonable taxation.

Profit incentive is the ability to make a profit from the private property you own. Profit drives people to produce more products for others to buy.

6. Competition is a rivalry for a business’s customers or markets. Businesses survive based on their ability to produce products competitively.

Agricultural Economics Ag econ is the application of economic principles to agricultural problems. The main emphasis of agricultural economics is farm production. However, it includes the entire agricultural industry. Agricultural economics includes agricultural finance, rural development, and agricultural policy.

Review / Summary What are three major components of economics. Name and describe the six types of economic systems. List the characteristics of the American economy. Agricultural economics includes the study of what three things

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