Economics

The work that people do.

• Labor

• Supply

• Demand

• Producers

Those who buy a good or service.

• Producer

• Consumer

• Service

• Private buisness

The amount of money that producers are willing

to sell a good or service for.

• Profit

• Price

• Price Incentive

• Income

Money citizens or businesses must pay the

government.

• Profit

• Interest

• Taxes

• Expenses

Things that can be touched such as clothing and

food.

• Market

• Labor

• Services

• Goods

When producers freely choose to sell and

consumers freely choose to buy, this tends to

help both buyers and sellers. Since consumers

are free to buy what they want, their purchases

reveal to producers what goods and services are

in demand. This helps sellers because demand

tells then what they should produce if they want

to make a profit. It also helps consumers by

making sure producers are only producing things

consumers want or need.

• Free Market

• Specialization

• Voluntary Exchange

• Entrepreneurs

For centuries, the South focused on crops like

tobacco and cotton. What is this called?

• Specialization

• Opportunity cost

• Embargoes

• Free Trade

Which statement BEST identifies and explains an

effect of specialization in the manufacturing

process?

• Production slows down as tasks become more

  complex.

• Workers receive higher wages by focusing on a single

  task.

• More efficient production leads to lower prices for

  consumers.

• A higher quality product leads to higher prices

  for consumers.

Henry Ford used the idea of specialization of

labor when he introduced the assembly line to

the process of car production.

What effect did the use of the assembly line have

on the production of cars?

• The cost for buying a car rose dramatically

  because the demand for them increased.

• Employees were forced to use voluntary

  exchange to trade their labor for cheap goods

  and services.

• Many people lost their job because they did not

  have the education required to work on the

  assembly line.

• As the time required to produce a car

  decreased, the price to purchase a car also

  decreased.

Banks help the US economy by

• Keeping people out of debt

• Preventing economic opportunity costs

• Loaning money to consumers and businesses

• Letting people and businesses borrow money

  without having to pay interest