1.     roles of the government 

Market economic system : is an economic system in which the production, pricing and distribution of goods and services are determined by the government rather than market forces

However, no economy can exist and develop well without the government

P1. The G can act as the provider of goods and services

-           provides goods and services for poor, the disable

-           pays for many social services such as military service, defense service and medical service

-           sometimes , give transfer payments

-            

p2. The G is a helper of weak business groups and an organizer of income allocation

-           Help the weak business groups to develop by many ways such as providing capital and technology as well as levying tariffs and taxes on the strong business groups

-           Allocates income in the society

P3. Acts as stabilizer in the market

-           Create jobs to unemployment

-           Narrow the gap between the rich and the poor

-           Narrow gap between rural and urban areas

P4. Acts as the producer of goods and services in the absence of the business venture

-           Business always do business to seek for their self- intersect

-           However, the role of G is to satisfy all the consumer’s demand

In conclusion

3. Advantages and disadvantages of different kinds of business organizations:

Introduction: 3 types of business organizations: proprietorship, partnership and corporation. Each types has its own advs and disadvs

Body:

P1: What is a proprietorship?

-           Advs:

+ very easy to set up and close down and requires low cost of formation

+ offers its owners freedom

-           Disadvs: limited life, limited abilities, limited funds and unlimited liability

What is unlimited liability?

 P2: What is a partnership?

-           Advs of a partnership

+ also easy to set up and close down

+ more experience and knowledge than a sole proprietorship

-           Disadvs: limited fund, limited life, unlimited liability and disagreement among partners. In this kind of business organization,  every partner is responsible for debts of the business.

P3: What is a corporation? A corporation is a business that is licensed by a state or a federal government

-           Advantages over the other two kinds of business organizations: unlimited life, limited liability, easy transfer of the ownership and fund raising.

+ the business has to pay the debts, not people who own it.

+ that ownership can be transferred to another person by selling shares of stocks

-           Disadvantages:

+ very complicated and expensive to set up

+ it is subject to double taxation: first, the corporate income tax and second, personal income tax paid by its stockholders.

In conclusion

4, Studying economics is studying the way to get rich

Introduction:  What is economic? Economics is the study of how society uses its scarce resources to produce goods and services.

-           Some people argue that studying economics is studying the way to get rich.

-           Agree with it

Body

P1: Give us background knowledge to solve our basic economic issues.

-           Know economic resources: natural resources, human resources, capital resources are limited, but demand is not limited => make economic choices. But how to have the best choice without having good or at least basic economic knowledge.

P2: Know how to invest our capital: learn about different kinds of businesses, their advantages and disadvantages => choose the kind of business that is most suitable and make it easy to be successful in the business

P3: Know to deal with the shortage of goods.

In conclusion

5, How do prices in the market determine the answer of basic economic questions?

Introduction: what is price? Price is a unit of money or another kind of goods paid for a unit of product

-           Plays an important role in the buying and selling process

-           Help to determine answer of basic economic questions: what, how and for who to produce

Body:

P1: What to produce

-           Price increases, producers => produce more => increase their profit. Other people => be attracted into business => gain profit

-           Price decreases, producers minimize their production or change to produce other goods.

P2: how to produce

-           Producers compete => attract more consumers => reduce the product price => make their production efficient => save raw materials, reduce production cost

P3: for whom to produce

When selling  products, producers and sellers set the price.

-           If too high, few consumers can afford => hard for them to sell out their products or gain as much profit as expected.

-           If too low, a lot of people afford => worry about the quality of the product. That’s why, producers and sellers have to find out the price that can satisfy both consumers and them.

In conclusion

6. Why are market prices fluctuating but not fixed in a market economy? What makes prices change?

Introduction: What is the market price? Is the one at which the quantity demanded is equal to the quantity supplied.

-           Supply and demand are two decisive factors in determining the market price

-           Changes in supply and demand make their prices fluctuate

Body:

P1: Demand

-           What is demand affected by?

+ prices of related goods including compliments and substitutes. What are compliments and substitutes?

P2: supply

-           What is supply influenced by?

+ Technology. How?

+ Input cost. How?

+ Government regulations. How?

In conclusion

7. What is economics about? Why do people, businesses and government have to make economic choices?

Introduction: a lot of economists have different definitions on economics.

-           What is economic? Is the study of how society uses its scarce resources to produce goods and services.

-           It is obvious => has to make economic choices => understand such an issue => think of two below important factors

Body:

P1: doing any business activity => need one or all economic resources including capital, human and natural ones.

+ what are natural resources? All things from the natural world that serve as raw material input for production of goods and services

+ what are human resources? Consists of all active population of a country. In other words, they are at the working age except disabled and handicapped people

+ what are capital resources? Are both producible and reproducible things which are used to produce goods and services

+ are they limited or not?

P2: our demand consists of needs and wants

-           Are they limited or not?

-           When satisfy one demand, others appear immediately => make economic choices

-           Whenever make an economic choice, there is an opportunity cost to us in terms of what we have to give up or trade off in order to get whatever we select.

In conclusion

8. Three economic systems:

Introduction: what is an economic system?

-           3 types of economic systems: traditional, market and command ones. Each economic system has its own way to answer basic economic questions

Body:

P1: What is traditional economic system?

Functions: answer to all basic economic questions => the habit and custom.

+ produces goods and services in traditional ways

+ producers group

+ consumers look for producers/sellers to purchase products

P2: what is a command economic system?

Functions: decides product to businesses through the production quota.

+ food stamp system => distributes goods and services to consumers

+ state-run company => capital invested by the Gov.

P3: what is a market economic system?

Functions: do market research => consumers’ demand for the product

-           Businesses => reduce their product price => apply new technology, purchase new machines => their production efficient

-           Attract consumers => doing marketing, giving promotion

In conclusion