APEX LSN Government Grade 9 Learning Packet...production. But the Supreme Court declared the program unconstitutional in 1936, ruling that farming regulation was a state matter, not

SOCIALSTUDIESLSNGovernment–Grade9

Packet2–(April20–May1)–Weeks3&4

CHARLES COUNTY PUBLIC SCHOOLS

APEX LSN Government Grade 9

Learning Packet



Student:__________________________________________School:_________________________________Teacher:___________________________________________Block/Period:___________________________

PacketDirectionsforStudentsStudentsshouldcompletethefollowingsectionsoftheAPEXAmericanGovernmentcourse.8UnitOverview:PublicPolicyWeek38.2LessonOverview:DomesticPolicy8.2.1Study:SocialPolicyExaminesignificantissuesinsocialpolicyandanalyzehowtheseissuesreflectnationalvaluesandprinciples.8.2.2Quiz:SocialPolicyTakeaquiztoassessyourunderstandingofthematerial.Week48.3LessonOverview:EconomicPolicy8.3.1Study:GovernmentandtheEconomyLearnaboutbasiceconomicconceptsandabouttheeconomicsystemoftheUnitedStates.8.3.2Quiz:GovernmentandtheEconomyTakeaquiztoassessyourunderstandingofthematerial.



WEEK38.2-DomesticPolicy

DomesticpoliciesensurethatAmericansarehappy,healthy,andproductive.TheU.S.governmentdedicatesmostofitstime,money,andenergytodomesticpolicy—thepublicpolicythataffectsmatterswithinthecountry'sborders.Domesticpolicyissuesarediverse,coveringeverythingfromhealthcaretotheprotectionoftheenvironment.ThegovernmentactstocreateandcarryoutpoliciestobenefitpeopleintheUnitedStates,sometimesthroughspecificprogramsandsometimesthroughlargerdecisionsrelatedtohowpublicandprivatelandisused.Inthislesson,youwillexploreamajorareaofdomesticpolicy:socialpolicy.Inaddition,you'lllearnhowlanduseplanningandenvironmentalpolicyshapeourcommunitiesnowandinthefuture.Youwillalsoexploreconflictsthathavearisenasthesepoliciesweredebatedandimplemented.LessonObjectives

• Explainsignificantissuesinsocialpolicy.• Analyzehowsocialpolicyissuesreflectnationalvaluesandprinciples.• Analyzethedebateoverhealthcareandhealthcarecoverageandthevaluesandprinciplesitreflects.• Analyzehowgeographicconcernsshapegovernmentpolicyontheenvironment,landuse,andpopulation

management.



8.2.1Study:SocialPolicyUsethisstudyguidetoanswerquestionsaboutimportantconceptscoveredinthisactivity.Definethefollowingterms.

Terms Definition

AffordableCareAct

cybersecurity

GreatSociety

Medicaid

Medicare

NewDeal

schoolchoice

socialpolicy

SocialSecurity



Answerthefollowingquestionsasyoucompletethestudy.Usethelistedpagenumberstofindtheinformationyouneed.1.Listthemaingoalsofsocialpolicy.2.HowdidtheNewDealchangeAmericansociety?3.WhatarethesimilaritiesanddifferencesbetweentheNewDealandtheGreatSociety?4.Whataresomeobjectionspeoplehavetoentitlementsandsocialwelfareprograms?5.ListthewaystheAffordableCareAct(ACA)changedtheU.S.healthcaresystem.(p.10)



6.Describetherelationshipbetweenthestatesandthefederalgovernmentintheareaofeducationpolicy.7.Explainschoolchoiceandidentifythreewaysstatesprovideschoolchoice.8.Completethetablebydescribingthreemodernpolicyconcerns.

Cybersecurity

Internetcensorship

Alternativeenergy

Inoneortwosentences,summarizethe"bigidea"ormainpointofthisstudy.



SocialPolicyAmericansocietyisbuiltoncertaincorevalues:equality,opportunity,fairplay.Butbecausenosocietyautomaticallyadherestothesevalues,thegoalofpolicymakingistopromotethem.Effortstoadvancethesevaluesfallspecificallyunderthecategoryofsocialpolicy.Socialpolicyrelatestothewaypeoplelive,addressingquestionsabouteducation,health,family,andwork.Inthisactivity,youwillexaminethedevelopmentofsocialpolicyintheUnitedStatesduringthepastcentury.Inparticular,youwillexplorehowtheNewDealandtheGreatSocietyaddressedissuesofpoverty,inequality,andinsecurity.Youwillalsoexaminethedebatesandcontroversiesthataroseinresponsetothesemajorpolicyprograms.TheGoalsofSocialPolicyThegoalsofsocialpolicyaretoensureequalopportunityforallandtoprovideeverycitizenwithabasiclevelofeconomicsecurity.Toreachthesegoals,thegovernmentoffersfreeeducationtoeverychild.Publicschoolingprovideschildrenwiththebasicskillstheyneedtosucceedinlife.Thegovernmentalsooperatesavarietyofsocialwelfareprograms.Theseprogramshelppeoplewhostrugglewithpoverty,sickness,anddisabilities.TheBirthofanActivistGovernmentBeforetheGreatDepression,thefederalgovernmenthadalimitedroleinAmericansociety.Itfocusedonnationalsecurity,trade,andimmigration,anditleftquestionsofhealth,education,andfinancialsecuritytothestates.Thestates,fortheirpart,oftendidlittletopromotethewelfareoftheircitizens.ButduringtheDepression,manycitizensweresuffering,andpeoplebegantoquestionthewisdomofthislaissez-faireapproach.WithsomanyAmericanssinkingintopoverty,peopledemandedaction.PresidentFranklinD.RooseveltpromisedtohelptheAmericanpeoplewiththeNewDeal.Thismajorpolicyprogramgotthegovernmentheavilyinvolvedinsocialpolicyforthefirsttime.NewDealProgramsTheNewDealcreatedanumberofgovernmentagenciestoaddressawiderangeofproblemsthatAmericansfacedduringtheDepression.NewDealProgramsProtectingtheelderly-TheSocialSecurityAdministrationwascreatedtofightpovertyamongseniorcitizensandpreventfinancialinsecurityforretiredAmericans.Thisprogram,whichisfundedbycurrentwageearnersandtheiremployers,providesguaranteedincomeforretiredworkers.Helpingfarmers-TheAgriculturalAdjustmentAdministrationwasdesignedtosupportcroppricesbyreducingproduction.ButtheSupremeCourtdeclaredtheprogramunconstitutionalin1936,rulingthatfarmingregulationwasastatematter,notaformofinterstatecommerce.TheNewDealalsoestablishedprogramstohelpfarmerssecureloans,includingtheFederalFarmMortgageCorporationandtheFarmCreditAdministration.Fightingunemployment-DuringtheGreatDepression,unemploymentwasoneofthenation'sbiggestproblems.Inresponse,thegovernmentcreatedmanyagenciestoprovideworkforjoblessAmericans.TheseincludedthePublicWorksAdministration,theCivilianConservationCorps,andtheWorksProgressAdministration.TheseprogramswerealldiscontinuedbytheendoftheDepression,whenwidespreadunemploymentwasnolongeraproblem.



Providinghousingassistance-TheNewDealgotthefederalgovernmentinvolvedinthehousingmarket.TheU.S.HousingAuthorityandtheFederalHousingAdministrationwerecreatedtohelplow-incomeAmericansbuyhomes.Bothagenciescontinuetooperatetoday.Fightingfuturecrises-MostoftheearlyeffortsoftheNewDealfocusedoneconomicpolicyratherthansocialpolicy.Thegovernmentregulatedbusinesspracticesinanefforttoavoidfuturecrises.ItpassedlawsregulatingthefinancialindustryandcreatedtheSecuritiesandExchangeCommissiontoenforcethoselaws.ItalsoestablishedtheFederalDepositInsuranceCorporationtoprotectcitizens'savingsagainstbankfailures.HowtheNewDealChangedAmericaTheNewDealchangedthelivesofmanyAmericans.BycreatingtheSocialSecuritysystem,theNewDealprovidedelderlyAmericanswithfinancialsecurity.Italsohelpedthepoor,theunemployed,andotherstrugglinggroups,suchasfarmers.Atthesametime,theprogramscreatedbytheNewDealchangedAmericans'attitudeaboutthegovernment'sroleinsociety.TheNewDealsignaledanacceptanceofsociety'sresponsibilitytocareforvulnerablegroups.SincetheNewDealera,socialwelfareprogramshavebeenafamiliarfeatureofAmericanlife.Review:TheGoalsoftheNewDealTheNewDealmetthegoalsofsocialpolicybycreatingagenciestodealwithseveralspecificproblemsduringtheGreatDepression.

BeyondtheNewDealTheNewDealtransformedtherelationshipbetweengovernmentandsocietyintheUnitedStates.ThesocialpolicyinitiativessetinmotionbyPresidentRooseveltpermanentlyexpandedthesizeandscopeofthefederalgovernment.Duringtheprosperous1960s,thegovernmentstartedanewwaveofsocialpolicyinitiatives,whichfurtherexpandedthegovernment'srole.In1964,PresidentLyndonB.JohnsondeclaredWaronPoverty.Thefollowingyear,heoutlinedthegoalsofhisGreatSocietyprogram.



TheGreatSocietyisaplacewhereeverychildcanfindknowledgetoenrichhismindandtoenlargehistalents.Itisaplacewhereleisureisawelcomechancetobuildandreflect,notafearedcauseofboredomandrestlessness.Itisaplacewherethecityofmanservesnotonlytheneedsofthebodyandthedemandsofcommercebutthedesireforbeautyandthehungerforcommunity.1—LyndonB.JohnsonThreeExamplesofGreatSocietyReformsExplanatorytext:In1965,Congresspassedtwolawsthatexpandedfederalfundingforeducation.TheElementaryandSecondaryEducationActprovidedthefirstfederalfundingforpublicschools.TheHigherEducationActcreatedaNationalTeacherCorpsandestablishedafinancialaidsystemforcollegestudents.Economicopportunity:TheGreatSocietybeganwiththeEconomicOpportunityActof1964.Thiswide-reachinglawcreatedtheJobCorpsandsetupasystemforvocationaltraining.Itfundedcommunityactionprograms,includingfreepreschoolforunderprivilegedchildren.Italsoprovidedmoneyforloanstosmallbusinessesandfarmers.Healthcare:In1965and1966,CongresscreatedtheMedicareandMedicaidprogramstoprovidetheelderlyandthepoorwithfreehealthcare.DebatingtheSafetyNetSafetynetprogramsthatcreateentitlements,suchasSocialSecurity,Medicare,andMedicaid,arecontroversial.WhenDemocratshavetriedtoexpandsocialwelfareprograms,they'vefacedstrongoppositionfromRepublicans,whousuallyprefertodecreasespendingontheseprograms.TheAffordableCareActIn2008,BarackObamacampaignedforpresidentbypromisingtobringabouthealthcarereform.DuringObama'sfirstterm,CongresspassedtheAffordableCareAct.AlsoknownasObamacare,theACAwasasweepingreformlaw,butitdidnotachieveeverygoalhealthcarereformershadhopedfor.EversincetheAffordableCareActwasfirstproposed,ithasbeencontroversialandhasfacedanumberofattacks.RepublicansinCongresshavevowedtorepealthelaw.OthershavechallengedcentralfeaturesoftheACAinfederalcourt.Intwoimportantcases,theSupremeCourtupheldtheconstitutionalityofthelaw'smainprovisions.EducationPolicyThefreepublicschoolsystemissofamiliartomostAmericansthatithardlyseemslikeapublicpolicyissue.Butthenationhasnotalwayshadfreeschoolsopentoallchildren.InearlyU.S.history,mostschoolschargedfeesforstudentstoattend.Bytheendofthe19thcentury,however,moststateshadestablishedasystemoffreepubliceducation.IntheUnitedStatestoday,educationpolicyiscontrolledmostlyatthestateandlocallevels.Stategovernmentsdeterminetheageswhenchildrenhavetoreceiveaneducation—usuallybetweentheagesof6and16.Statesalsoprovideageneraloutlineofthecontentthatschoolsteachandsetgoalsforstudentsbasedontheirgradelevel.Localgovernmentsoperateschoolsdirectly.Theyalsofundpublicschools,mostlythroughpropertytaxes.



ChangingEducationPoliciesLocalcontrolisthecenterpieceofeducationpolicyintheUnitedStates.Asaresult,therearewidevariationsinschoolcurriculumandcontentacrossthecountry.UntiltheGreatSociety,thefederalgovernmentlargelystayedoutofeducationpolicy.Sincethen,policymakershavestruggledtobalancelocalcontrolwiththeneedtoprovideaqualityeducationtoeverystudentinthenation.Federaleducationpolicyhascontinuedtoevolveoverthepast50years.Milestone1:1965:ElementaryandSecondaryEducationAct-TheElementaryandSecondaryEducationAct,signedin1965byPresidentLyndonJohnson,markedamajorchangeinthefederalgovernment'sinvolvementineducation.Theactprovidedfederalfundingforpublicschoolsacrossthenation.Italsocreatedprogramstoaidminoritystudentsandschoolsinstrugglingcommunities.Milestone2:1980:U.S.DepartmentofEducation-In1980,PresidentJimmyCartercreatedtheDepartmentofEducationasacabinet-leveldepartmentoftheexecutivebranch.Thisdepartmentcentralizedfederaleffortstopromotestudentachievementandensureequalaccesstoeducation.AlthoughCarter'ssuccessoraspresident,RonaldReagan,scaledbackfederalinvolvementineducationpolicy,theDepartmentofEducationcontinuedtoplayanimportantroleoverseeingthenation'seducationpolicy.Milestone3:2001:NoChildLeftBehindAct-Anothermajorshiftinfederaleducationpolicyoccurredin2001,whenPresidentGeorgeW.BushsignedtheNoChildLeftBehindAct.Theactwasaresponsetodecliningachievementinschoolsacrossthecountry.Thelawrequiredstatestosetuprigoroustestingrequirementsforstudentsthroughstandardizedtesting.Theactalsoincreasedfundingforpublicschools,butinmanycasesschoolsstillstruggledtopayforthetestingprogramstheactrequired.Milestone4:2015:EveryStudentSucceedsAct-UnderPresidentObama,theNoChildLeftBehindActwasreplacedbytheEveryStudentSucceedsAct.Thenewlawmaintainedfederalfundingforpublicschoolsbutreducedthetestingrequirements.Italsogavemorepowertoindividualstatestodeterminetestingrequirements,scalingbackfederalinvolvementineducationpolicy.SchoolChoiceOneofthemostwidelydebatedtopicsofeducationpolicytodayisschoolchoice.IntheAmericaneducationsystem,schoolsusuallyreceiveeducationfundingfromthestateandfederalgovernmentsonlyifstudentsattendthepublicschooltheyhavebeenassignedtobasedontheirplaceofresidence.Instead,schoolchoiceallowsparentstousetheseeducationfundstosendtheirchildrentoprivateschoolsorschoolsinotherareas.Schoolchoiceisacontroversialissue.Supportersbelieveitallowsstudentstogettheeducationthatbestfitstheirneeds,regardlessoftheirlocation.Opponentsbelievethatschoolchoicetakesimportanteducationfundingawayfromlow-incomeschoolsandstudents.Currently,severalstateshaveenactedlegislationthatsupportssomeformofschoolchoice,includingofferingschoolvouchersandpersonaltaxcredits,aswellasestablishingcharterschools.



ModernPolicyConcernsSocialpoliciesaddressavarietyofissues,includingthosethatmaynothaveexisted50to100yearsago.Improvementstotechnologyhavechangedthewaypeoplework,travel,andcommunicate.Governmentsmuststayup-to-datewiththelatesttechnologyandmakepoliciesthataddresstheseimportantissues.Somemodernpolicyconcernsincludecybersecurity,Internetcensorship,andtheuseofalternativeenergy.Technologicaladvancementshaveforcedthegovernmenttousesocialpolicytoaddressnewbutimportantissues.Intheexercise,reviewtheconceptsfromthissectionbymatchingeachissuewiththepolicymostlikelyusedtoaddressit.Summary:SocialPolicySocialpolicyattemptstopromoteequalopportunityandprovideabasiclevelofeconomicsecurity.Toreachthesegoals,thegovernmentoperatessocialwelfareprogramsandasystemoffreepubliceducation.Thegovernment'sinvolvementinsocialpolicyexpandedsignificantlyduringtheGreatDepressionwhentheNewDealwascreated,anditsinvolvementexpandedevenfurtherwiththeGreatSocietyprogramsofthe1960s.Inmorerecentdecades,thefederalgovernmenthaspassedadditionalmajorreformstohealthcareandeducationpolicies,andithasintroducednewlegislationtodealwithmodernpolicyconcerns.Thedebateabouttheexpandingroleofthegovernmentthroughsocialpoliciescontinuestothisday.



Quiz:SocialPolicy

Question1of10Whichstatementrepresentsaviewofanopponentofthesocialsafetynet?

A. Whenpeoplecannottakecareofthemselves,itisthegovernment'sjobtohelp.

B. Weshouldincreasegovernmentspendingtoensurenobodylivesinpoverty.

C. Peopleshouldbeguaranteedacertainminimumstandardofliving.

D. Governmentshouldnotintrudeonpeople'slives.

Question2of10WhichdiagramshowshowtheroleofgovernmentchangedasaresultoftheNewDeal?

A.

B.

C.

D.



Question3of10WhichstatementwouldmostlikelybemadebyasupporteroftheAffordableCareAct?

A. Governmentmustprotectcitizensfromabusebyinsurancecompanies.

B. Laissez-faireeconomicsisthebestwaytoensuresocialfairness.

C. Privatehealthinsuranceistheproblem,notthesolution.

D. Itisuptoindividualswhethertheywanttopurchasehealthinsurance.

Question4of10HowhavepopulationchangesaffectedtheMedicareprogram?

A. Theelderlyhavebecomemoreurban,sotheiraccesstoqualityhealthcarehasimproved.

B. Thepopulationhasaged,sotheprogramcoststhegovernmentmoretorun.

C. Theelderlyhavebecomemorerural,sotheiraccesstoqualityhealthcarehasdecreased.

D. Thepopulationhasgottenyounger,sotheprogramcoststhegovernmentlesstorun.

Question5of10Abillispassedthatgivesataxcredittopeoplewhopurchaseelectricvehicles.Whatpolicyconcerndoesthislegislationaddress?

A. Alternativeenergy

B. Schoolchoice

C. Cybersecurity

D. Internetcensorship



Question6of10

NewDealAgency Goal

AgriculturalAdjustmentAdministration Assistfarmers

FederalHousingAdministration Assistlow-incomecitizens

WorksProgressAdministration Reduceunemployment

SocialSecurityAdministration ?

Whichitembestcompletesthechart?

A. Preventpovertyamongtheelderly

B. Providequalityhealthcaretoallcitizens

C. Improveeducationforchildreninruralareas

D. Providecompanionshipforthelonelyelderly

Question7of10WhichpresidentwouldhavebeenmostlikelytoagreethataccesstohighereducationamongimpoverishedAmericansrequiredgovernmentintervention?

A. RonaldReagan

B. RichardNixon

C. GeorgeH.W.Bush

D. LyndonB.Johnson



Question8of10WhichbenefitwasnotpartoftheEconomicOpportunityActof1964?

A. Vocationaltraining

B. Freepreschoolforunderprivilegedchildren

C. Loansforsmallbusinesses

D. Healthcareforimpoverishedcitizens

Question9of10WhatdidRepublicanssayabouttheSocialSecurityActwhenitwasfirstintroduced?

A. TheretirementagerequiredbySocialSecurityistoohigh.

B. Thestates,notthefederalgovernment,shouldadministerSocialSecurity.

C. Itshouldbeexpandedtoincludeallcitizens,notjusttheaged.

D. Savingforretirementisthejobofcitizens,notgovernment.

Question10of10UndertheAffordableCareAct,whatistheroleofhealthinsuranceexchanges?

A. Theyenablecitizenswhocouldnototherwiseaffordittobetreatedforhealthconditions.

B. Theyofferhealthcaredirectlyfromthegovernment.

C. Theyprovidesubsidizedhealthcaretothosewhoareuninsured.

D. Theyhelpcitizensshopforhealthinsurance.



WEEK48.3-EconomicPolicy

EconomicpolicyensuresthattheU.S.economyremainsstrong.OneofthebasicgoalsoftheUnitedStatesgovernmentistosupportastrongandstableeconomy.Thegovernmenttriestocreatepoliciesthatensureallcitizenshaveaccesstothegoodsandservicestheywantorneed.Todothis,theUnitedStatesmakeseconomicdecisionsaboutspecificprogramsandaboutlargerissuesrelatedtospendingandtaxation.AllthesedecisionsaffectthelivesofU.S.citizens.Inthislesson,youwillexploreanothermajorareaofdomesticpolicy:economicpolicy.Inaddition,youwilllearnaboutbasiceconomicconcepts,howtheeconomicsystemoftheUnitedStatesoperates,andhoweconomicpolicydecisionsaffecttheeconomy.LessonObjectives

• DescribetheeconomicsystemoftheUnitedStates.• Describethebasiceconomicconceptsofscarcity,opportunitycost,andsupplyanddemand.• Analyzehowgovernmentactionsaffecttheeconomy.• ExplainU.S.fiscalandmonetarypolicyandhowtheyaffecttheeconomy.• Examinetheeconomicandnoneconomiccostsandbenefitsofpolicydecisions.



8.3.1Study:GovernmentandtheEconomyUsethisstudyguidetoanswerquestionsaboutimportantconceptscoveredinthisactivity.

Definethefollowingkeyterms.

Term Definition

traditionaleconomy

commandeconomy

marketeconomy

economicsystem

mixedmarketeconomy

economics

choice

resource



scarcity

opportunitycost

good

service

market

supply

demand

equilibriumprice

shortage

buyer

seller

economicmotivation



1.Describethebasicproblemofeconomics.

2.Completethetablebyprovidinganexampleofeacheconomicterm.

Term Example

Economicmotivation

Producer

Consumer

Opportunitycost

3.Whatarethethreeeconomicquestionsthatgovernmentsmakingeconomicchoicesmustconsider?



4.Completethetabletolistthethreebasiceconomicsystemsandthenprovideanexampleofwhomakeseconomicdecisionsineachsystem.

Economicsystem Exampleofwhomakeseconomicdecisions

Thegovernmentdoesnotplayaroleinthistypeofeconomicsystem;mosteconomicdecisionsaremadebysmallergroups.

Commandeconomy

5.Completeeachdiagramtoshowhowsupplyanddemandaffectprices.



6.Explainwhyequilibriumpriceisthegoalofsellersinamarketeconomy.Then,describewhatcouldhappenifsellersdon'treachanequilibriumpriceforagoodorservice.7.Whataretwoincentivesthatmotivateindividualsandbusinessestoproduceandsellmoregoods?8.ExplainwhytheUnitedStatesisanexampleofamixedmarketeconomy.9.CompletethetablebyprovidinganexampleofeachtypeofeconomicpolicytheU.S.governmentusestoinfluencetheeconomy.

Regulatorypolicy

Fiscalpolicy

Monetarypolicy

Inoneortwosentences,summarizethe"bigidea"ormainpointofthisstudy.



GovernmentandtheEconomyImagineyourcitywantstohostamajorsportingevent.Supportersoftheeventareexcitedabouttheprospectofshowingofftheircity,andbelievethattouristspendingcouldgivelocalbusinessesaboost.Butinordertohosttheevent,yourcitywouldneedtospendalotofmoneyupdatingthelocalstadium,modernizingthetransportationsystem,andbuildingnewhotels.Opponentssaythatthecityhasmoreimportantneedsthatshouldbeaddressedfirst,suchasrepairingdamagedroadsandbuildinganewpublicschool.Ifthecitychoosestospendmoneyononeoption,itcan'tdotheother.Whatshouldthecityspenditsmoneyon?Thisisacommonchoicethatmanygovernmentsface—decidingwhattodowiththeirlimitedresources.TheStudyofEconomicsInthepreviousexample,thecityhasmanyneedsandwants—itneedstorepairitsroads,itneedstobuildanewschool,anditwantstohostasportingevent.Butithaslimitedresources—inthiscase,money.Thecityisfacingacommonproblem:scarcity.Scarcityisasituationinwhichpeople'sneedsandwantsaregreaterthantheirresources.Inthisscenario,thecitysimplydoesn'thaveenoughmoneytodoeverythingitneedsorwantstodo,soitmustmakeachoice.Decidingwhattodowithlimitedresourcesisthebasicproblemofeconomics:Whatchoicesdowemakewhenresourcesarescarce?TheStudyofEconomicsThebasicproblemofeconomics:Economicsisthestudyofhowpeoplechoosetouselimitedresourcestomeetunlimitedwants.Economicsisrelatedtoscarcity.Withoutscarcity,whichaffectsallpeople,businesses,andgovernments,therewouldbenoneedforeconomics.Unlimitedwants:Wantsareneedsthatcanbemetbygoodsorservices.Goodsareitemsthatwecantouch,suchasanewroad.Servicesarejobsthatotherpeopledoforus,likeconstructinganewbuilding.Citieshavebasicneeds—likehousing,infrastructure,andbusinesses—buttheircitizensoftenwantmore,suchaselaboratetransportationnetworksorsportsstadiums.Limitedresources:Resourcesareusedtomakeagoodorperformaservice.Resourcesincludehigh-qualitysoiltogrowfood,workerstomakeproducts,andmoneytopayforgoodsandservices.Ingeneral,therearenotenoughresourcesavailabletomeeteveryone'swants.Scarcity:Scarcitymeanspeople'swantsaregreaterthantheirresources.Theproblemofscarcityisthatpeoplehaveunlimitedwantsbutlimitedresources,whichforcesthemtodecidehowtouseresourcestomeettheirbasicneeds,alongwithasmanyadditionalwantsaspossible.Review:EconomicsandScarcityBothindividualsandgovernmentsmustdealwiththeproblemofscarcity.Therearesimplynotenoughresourcestomeeteveryone'swants.Scarcityforcespeopletomakedecisionsabouthowtheywillusetheirlimitedresources.



EconomicMotivationandOpportunityCostThereasonpeoplemakecertainchoices,suchasbuildingabridgeinsteadofaschool,iscalledaneconomicmotivation.Scarcityisacommoneconomicmotivation.Peopleareoftenforcedtomakechoicesabouthowtospendwhattheyhavebecauseresourcesarelimited.Forexample,abusinessmustchoosewhichgoodsorservicestoproduce,andacustomermustchoosewhichgoodsorservicestobuy.Individualsandgovernmentsmustalsoweightheirchoicesagainsttheopportunitycost,orthevalueofwhattheygiveupwhentheymakecertainchoices.WhatisChoice?Individualsandgovernmentsaremotivatedtomakemanykindsofchoiceseveryday.Forexample,acitygovernmentmightgivemorefundingtoahumanservicesdepartmentthantotransportation.Allpeoplearemotivatedtomakechoicesbecausetheyfacescarcity—resourcesthatarelimitedbutwantsthatareunlimited.Imaginesomelegislatorswanttobuildanewhighway,butotherswanttobuildanewschool.Inthiscase,thelegislatorsaremotivatedtochoosehowtospendthelimitedresourceofmoney.Shouldtheyfundconstructionforahighwayorforapublicschool?Andwhatdoesthecityhavetogiveupwitheachchoice?Thevalueofwhatitgivesupiscalledtheopportunitycost.WhatistheOpportunityCostofthatChoice?Opportunitycostisthevalueofwhatsomeonegivesupinordertochoosesomethingelse.Forexample,imaginethelegislaturedecidestobuildtheroadinsteadofthepublicschool.Theopportunitycost—whatisgivenup—mightbeabettereducationforthestate'sstudents.Orifthelegislaturechoosestobuildtheschoolinsteadofthehighway,theopportunitycostmaybebettertrafficflowandfastercommutes.Thelegislaturehastodecidewhethertheopportunitycostofitschoiceisworthit.



ThreeEconomicQuestionsEveryonemustdealwiththeproblemofscarcity.Therearesimplynotenoughresourcestomeeteveryone'swants.Scarcitymotivatesgovernmentstomakechoicesabouthowtheywillusetheirlimitedresourcestoprovidegoodsandservices.Often,governmentsconsiderthreequestionswhenmakingthesechoices.Question1:Whatgoodsandservicesshouldbeproduced?Thegoodsandservicesagovernmentproducesdependonwhatthatgovernmentanditscitizensvalue.Tovaluesomethingmeanstobelieveithasimportance.Governmentsvaluedifferentthings—onemayplaceagreatervalueoncarsandtransportation,whileanothermayplacemorevalueonfarmingandfoodproduction.Governmentsalsolookatthecostsofmakinggoodsandprovidingservices.Somegovernmentshaveadvantagesthatletthemproducegoodsorservicesinacost-effectiveway.Florida,forexample,hasalotofwarmweatherandsunshine.Theseconditionsallowfarmersinthestatetogrowcitrusfruits,likeoranges,atarelativelylowprice.Becauseofthis,localgovernmentsinareaswiththiskindoffarmlandplaceahighervalueonagriculturethanonothermeansofproduction.Question2:Howwillthesegoodsandservicesbeproduced?Onceagovernmenthasdecidedwhatgoodsandservicestoproduce,itmustdecidehowtoproducethem.Theproductionofgoodsandservicesrequiresresources,suchasmaterialsandlabor.Materialsarethesuppliesneededtomakeagoodorservice,whilelaboristheworkthatneedstobedone.Forexample,ifanareahasalotoffarmland,thegovernmentmaydecidetopromotetheproductionoffruitsandvegetables.Thefarmlandisamaterialresource,whilethefarmersneededtoworkthelandarethelabor.Butifanareadoesnothavefarmland,productionoffruitsandvegetablesmaybedifficultandexpensive.Inthiscase,thegovernmentwillprobablydecidetoencouragetheproductionofanothergoodorservice.Question3:Whowillgetthegoodsandservices?Onceagovernmenthasdecidedwhatgoodsandservicestoproduceandhowtoproducethem,itmustdecidewhogetsthem.Remember,therewillneverbeenoughgoodsandservicestomeeteveryone'sneeds.Becauseofscarcity,governmentsmustdecidehowtodistributetheirresources.Somegovernmentsdistributeresourcesbasedonthevalueindividualsplaceonagoodorservice.Often,peopleshowthattheyvalueagoodorservicebyusingtheirownresources,likemoney,tobuyit.Othergovernmentsdistributetheirresourcesequallysothateveryonegetsalittleofaparticularresource.Forexample,somecountriesdistributefoodinthisway.Peoplemaynotgetallthefoodtheywantorneed,butatthesametime,noonegoeshungry.TypesofEconomicSystemsGovernmentsmustmakechoicesaboutwhatgoodsandservicestheywanttoproduce,howtheywanttoproducethosegoodsandservices,andwhowillgetthem.Thewayagovernmentapproachesthesechoicesoftendeterminestheeconomicsystemitwilluse.Therearethreebasiceconomicsystems:atraditionaleconomy,acommandeconomy,andamarketeconomy.



Traditionaleconomy-Inatraditionaleconomy,decisionsarebasedoncustomorhabit.Forexample,apersonmightbeexpectedtobeafarmerifthepeopleinherfamilyhavealwaysbeenfarmers.Thegovernmentdoesn'tplaymuchofaroleintraditionaleconomiesbecausemostdecisionsaremadebysmallergroups,usuallyfamilies.Traditionaleconomieswerecommoninthepastandcanstillbefoundinsomepartsoftheworldtoday,suchasdevelopingcountries.IntheUnitedStates,theseeconomiescanbefoundinsmallruralcommunitieswherejobsareoftenpassedfromonegenerationtothenext.Commandeconomy-Inacommandeconomy,thegovernmentmakesalltheeconomicdecisionsforthecountry,includingwhatproductstoproduceandhowmany.Thereislittleprivateownershipandalotofgovernmentcontrol.ChinaandtheformerSovietUnionwereonceexamplesofcommandeconomies,butpurecommandeconomiesaren'tverycommontoday.Marketeconomy-Inmarketeconomies,individualsmakeeconomicdecisionsandgovernmentsstaymoreorlessoutoftheway.Businessesdecidewhatandhowmuchtoproduce,andpeopledecidewhattheywanttobuy.TheUnitedStateswasoneofthefirstcountriestoestablishamarketeconomysoonafteritsfounding.Review:TypesofEconomicSystemsBecauseofscarcity,governmentshavetochoosewhichgoodsandservicestheywanttoproduce,howtoproducethem,andwhowillgetthem.Thewayagovernmentapproachesthesechoicesoftendetermineswhichtypeofeconomicsystemitwilluse:traditional,command,ormarket.

SupplyandDemandTheearlyUnitedStateswasoneofthefirstcountriestocreateamarketeconomywherebusinessescouldexpandnaturally,withoutgovernmentinterference.Inamarketeconomy,thepricesofgoodsandservicesaredeterminedbytheactionsofbuyersandsellersinamarket.Amarketcanbeaphysicallocation,likeamallorafarmersmarket,oranonphysicallocation,likeanInternetwebsiteorthestockmarket.Thepricesofgoodsavailableinamarketaresetbysupplyanddemand.



Supplyanddemandplayanimportantroleinmarketeconomies.Supplydescribeshowmuchofagoodisavailable.Demanddescribeshowmanypeoplewanttobuythatgoodatitscurrentprice.Supplyanddemandworktogethertosetprices,ortheamountofmoneyacustomerwillpayforagoodorservice.Pricesgodownifthereismoresupplythandemand-Imaginethatanelectronicsstorehas50laptopsthatitwantstosellfor$500each,butnoonewantstobuythelaptopsbecauseanewversionjustcameonthemarket.Inthiscase,thestore'ssupplyoflaptopsexceedsdemand.Ifthestorewantstosellthelaptops,itneedstolowerthepricetoattractcustomers'interest.Ifthereismoresupplythandemand,thepriceofagoodorservicegoesdown.Pricesgoupifthereismoredemandthansupply-Imaginethatsameelectronicsstorehad100ofthenewerlaptopsonsalefor$500each,anditsoldalloftheminlessthanaday.Infact,thestorehadtoturncustomersawaywhenthelaptopssoldout.Inthiscase,thedemandforthelaptopsexceededthestore'ssupply.Whenthestoregetsmorelaptops,itshouldraisethepriceinordertomakeahigherprofit.Ifthereismoredemandthansupply,thepriceofagoodorservicegoesup.EquilibriumPriceThegoalofsellersinamarketistoreachtheequilibriumpriceofgoodsorservices,orthepointatwhichsupplyanddemandareequal.Atthisprice,sellersareabletosellexactlytherightamountofgoodstobuyers,withnoshortageorsurplus.Inamarketeconomy,sellerscanquicklyadapttochangesinordertoreachequilibriumprice.Equilibriumpriceisreachedwhensupplyequalsdemand-Equilibriumpriceisthepointatwhichsellerssupplyasmanygoodsandservicesasbuyerswillpurchase.Marketsworkbestwhensupplyanddemandareequal.Imagineafruitstandsellsbananasfor$1apiece,andcustomersbuyallthebananasonadailybasis.Thefruitstand'ssupplyofbananasequalsthebuyers'demandforbananas.Marketscanadaptquicklytochangesinsupplyanddemand-Supplyanddemandchangeconstantly,andmarketsinamarketeconomycanadaptquicklyifpricesaretoohighortoolow.Ifgoodsarepricedtoohigh,buyers'demandwillgodown.Thisleavesthesellerwithasurplus,orextrasupplyofthatgood.Ifpricesaretoolowanddemandishigh,thesituationcouldresultinashortage,inwhichtherearenotenoughgoodstomeetdemand.Shortagesoftencausepricestorise.Anychangeinsupplyordemandaffectstheequilibriumprice.



IncentivesSellersinamarketeconomywanttoreachanequilibriumpricefortheirgoodsandservices.Buttheyarealsomotivatedbyotherincentives,suchasprofitandprivateownershipofbusinessesandproperty,toproduceandsellmore.Incentives:Anincentiveissomethingthatencouragespeopletomakeachoiceorperformanaction.Inamarketeconomy,incentivessuchasprofitandownershipofprivatepropertyareeconomicmotivationsforpeopletostartbusinesses.Thegovernmentencouragespeopletodothisbecausenewbusinesseshelpkeeptheeconomygrowing.Privateownership:Marketeconomiesarebasedontheideaofprivateownership.Individualscanowntheirownhomesorland,andbusinessesareoftenprivatelyownedaswell.Infact,intheUnitedStates,mostresources,includingland,areindividuallyownedratherthanshared.Privateownershipoftenservesasaneconomicmotivation.Peoplearemotivatedtoworkhardsotheycanowntheirownhomeorbusiness.Profits:Oneofthemaineconomicmotivationsinamarketeconomyismakingaprofit.Profitisthemoneythatisleftoverafterallexpensesarepaid.InamarketeconomyliketheUnitedStates,businessesareallowedtokeeptheirprofits.Butinothertypesofeconomicsystems,suchasNorthKorea's,individualprofitisn'tthegovernment'sgoal.Instead,peopleareoftenaskedtogivetheirprofitstothegovernmentsothatthemoneycanbedistributed,thoughnotalwaysequally.TheU.S.EconomyTheUnitedStatesbeganasamarketeconomy,butovertime,thegovernmentfounditneededtoestablishsomerulestoprotectindividualcitizensandstabilizetheeconomy,turningitintoamixedmarketeconomy.Inamixedmarketeconomy,mosteconomicdecisionsarestillmadebybusinessesorindividuals,butthegovernmenthasinputonhowbothcanoperate.IntheUnitedStates,thegovernmenttriestoinfluencetheeconomythroughitseconomicpolicy.Therearethreemaintypesofeconomicpolicy:regulatory,fiscal,andmonetarypolicy.TypesofEconomicPolicyRegulatorypolicy-Throughregulatorypolicy,thegovernmentcanhelpworkersearnmore,encourageconsumerstospendmore,ormakeiteasierforbusinessestoprofit.Todothis,thegovernmentsetsrulesforbusinessesandotherorganizations.Forexample,thegovernmentmightforcebusinessestomakesaferproductsandselltheminafairerway.Fiscalpolicy-ThegovernmentusesfiscalpolicytoadjusttaxesandimprovetheU.S.economy.Forexample,thegovernmentmightlowertaxesonbusinesses,whichwouldhelpthemmakeaprofitandencouragethemtohireworkers.Thegovernmentcanalsodirectlyspendmoneytoimprovetheeconomy.DuringtheGreatDepression,forinstance,theU.S.governmentspentmillionsonprogramstobuildhighways,dams,andotherprojects,givingAmericansjobsandthereforemoremoneytoputbackintotheeconomy.Monetarypolicy-Throughitsmonetarypolicy,thegovernmentcanreleasemoneyintotheeconomy.Forexample,theFederalReservecanbuybackbondsfrompeoplewhoinvestinthegovernment,whichgivesinvestorsmoneytospend.Abondisaloanindividualsmaketothegovernment,usuallytofundlargeprojects.Afteracertainperiod,peoplecancashinbondstogettheirmoneyback,plusinterest.Thegovernmentcanalsolowerorraisetheinterestrate.Lowerinterestratescangivebanksmoremoneytoinvestinbusinessesorlendtocustomers.



Quiz:GovernmentandtheEconomyQuestion1of10Whichsituationbestrepresentsalocalgovernmentdealingwithaproblemofscarcity?

A. Acityborrowsalargeamountofmoneyfromabanktobuildanewhospital.

B. Acitytriestomakemoremoneyintaxesbyattractingnewbusinesses.

C. Acityhasenoughmoneytorepaironlyoneofitsmanydamagedbridges.

D. Acitywantstogiveprivatecompaniesmorefreedomtomakedecisions.

Question2of10Whichdiagrambestillustratestheeconomicconceptofopportunitycost?

A.

B.

C.

D.



Question3of10Whichoutcomeismostlikelyifthesupplyofaproductincreasesandthedemandremainsthesame?

A. Thescarcityoftheproductwillincrease.

B. Thepriceoftheproductwilldecrease.

C. Theopportunitycostoftheproductwillincrease.

D. Theresourcesneededtomaketheproductwillincrease.

Question4of10Whichfactorplaysthelargestroleineconomicdecisionsinacommandeconomy?

A. Culturaltraditions

B. Governmentpolicies

C. Businessstrategies

D. Militarygoals

Question5of10Readthepassage:Agovernmenthopestopromoteastrongeconomybylettingcompaniesoperatefreely.Iteliminatesbusinessregulations,lowerstaxes,andencouragescompaniestoseekprofitshowevertheyseefit.Whichtypeofeconomicsystemdoesthepassagedescribe?

A. Mixed

B. Market

C. Traditional

D. Command



Question6of10Amixedmarketeconomydiffersfromamarketeconomybecauseit:

A. doesnotallowforprivateownershipofproperty.

B. givesgovernmentsmorecontrolovereconomicdecisions.

C. eliminatesprofitasamajoreconomicmotivation.

D. letscompaniesfreelymakemanyeconomicdecisions.

Question7of10Whatroledoincentivesplayinamixedmarketeconomy?

A. Theymakesurebusinessesfollowgovernmentdirections.

B. Theyreducetheopportunitycostforeconomicchoices.

C. Theymotivatepeopletomakecertaineconomicdecisions.

D. Theypreventcompaniesfromraisingpricesonproducts.

Question8of10Acountrywouldmostlikelyadoptacommandeconomyifitwantedto:

A. balancegovernmentandprivatecontrolovertheeconomy.

B. limitgovernmentinterferenceinprivatebusinesses.

C. makeprofitthecountry'smostimportanteconomicmotivator.

D. stopprivatecompaniesfrommakingbadeconomicdecisions.



Question9of10Whichstatementbestcompletesthediagram?

A. Citizenshaveunlimitedresourcesandlimitedwants.

B. Allcitizensareguaranteedtohaveajob.

C. Privateownershipofpropertyislimited.

D. Profitactsasamajoreconomicmotivator.

Question10of10Whichphrasebestcompletesthediagram?

A. Limitedprofits

B. Unlimitedwants

C. Limitedopportunitycost

D. Unlimitedregulation

Documents

APEX LSN Government Grade 9 Learning Packet...production. But the Supreme Court declared the program unconstitutional in 1936, ruling that farming regulation was a state matter, not