Summit Economics Study Guide Objective 1 ( 1)

What is the study of economics?

• the study of the stock market

• the study of money

• the study of politics

• the study of people, money, and choices

In economics, what does demand mean?

• how much people want to buy a product

• how many products are available

• how much people pay for a product

• how many people want to buy a product

In economics, what does supply mean?

• the amount of goods that customers buy

• the amount of goods available for sale

• the variety of products available to buy

• the number of customers who want a product

Before advances in transportation, how was trade limited?

• by GDP

• by price

• by location

• by low production

Why is infrastructure important to the economy?

• It helps workers to be paid on time.

• It makes currency more portable.

• It allows for easier production of goods and services.

• It creates an efficient web of communications.

Why is transportation important for the economy?

• It helps international trade by reducing taxes

• It helps trade occur faster and at greater distances.

• It helps sellers meet buyers face-to-face.

• It helps buyers understand the cost of products

What are some examples of infrastructure that are required for the economy to work?

• national parks and wildlife

• architects and engineers

• cars, gasoline, and oil

• roads, bridges, and power supply

One of the text resources states, “If you’d asked somebody 100 years ago, ‘How’s the economy doing?’ they wouldn’t have known what you were talking about. At the time, people talked about things like banking panics, and national wealth, and trade. But….this thing we call the economy — this thing that we constantly measure with specific numbers — wasn’t really invented until the 20th century.”

Of the terms mentioned in the above quotation, the term “GDP” is closest in meaning to __________.

• national wealth

• 20th century

• banking panics

• trade

What organization or institution usually endorses money?

• banks

• governments

• individual traders

• stock exchanges

What was one characteristic of cowry shells that made them possible to use as money in the past?

• Select one:

  beauty

• scarcity

• color

• diversity