Economics Review

Economics Review

What is an economy?

the way a certain place (often a country) makes things, offers services, and divides stuff up between people, usually using money.

This means that:

Consumers are free to buy whatever product they want. Companies can make whatever product they want.

The USA has a market economy

Supply and Demand

Supply is the amount there is of something. Demand is how much people want it. When there's more supply than demand, prices go down. When there's more demand than supply, prices go up.

Multiple Choice

when buyers and sellers come together to buy and sell

• market

• economy

• trade workers

• Publix

Multiple Choice

Colonial market economy?

• When buyers & sellers come together together in colonial America to buy & sell

• When people cam over on the Mayflower

• Wants and needs of consumers in Europe

• master trades workers who work in Virginia

Multiple Choice

a person who makes goods or services to satisfy the wants and needs of consumers

• buyer

• seller

• worker

• producer

Multiple Choice

desire for goods or services

• master

• demand

• service

• goods

Multiple Choice

Not enough to meet demand.

• available

• scarce

• supply

• demand

Multiple Choice

goods

• market

• desire for goods and services

• work performed for others

• something that is produced (clothing, nails, teapots...)

Multiple Choice

work performed for others

• demand

• goods

• services

• producer

Needs and Wants

Multiple Choice

1) Which of these is a need?

• A. clean air

• B. new jeans

• C. cool sneakers

• D. your favorite candy

Multiple Choice

2) Which of these is a want?

• A. food

• B. water

• C. shelter

• D. smartphone

Budget

• A plan for how to use your money over a period of time

• Keep track of what you earn, save, and spend

Multiple Choice

4) Living on a budget means you

• A. can never buy anything fun.

• B. should get everything that you want.

• C. don’t have to make choices about your money.

• D. are planning how to spend and save your money.