What is the Economy?

Fill in the blanks with the words below (write the numbers in the square).

The economy is how the _________ (1) of an area are ________________ (2), ________________ (3) and _______________ (4) .

• delivered

• produced

• resources

• used

Select the objects which are needs.

• 
• 
• 
• 

Explain what is a need.

What is a service?

• It's an actual product which you can buy or sell.

• It's someone who makes something.

• It's someone who buys something.

• It's a thing that other people do for you.

What is a good?

• It's an actual product which you can buy or sell.

• It's someone who makes something.

• It's someone who buys something.

• It's a thing that other people do for you.

What is a consumer?

• It's an actual product which you can buy or sell.

• It's someone who makes something.

• It's someone who buys something.

• It's a thing that other people do for you.

What is a producer?

• It's an actual product which you can buy or sell.

• It's someone who makes something.

• It's someone who buys something.

• It's a thing that other people do for you.

Write numbers in the squares.

There are two main types of economy : __________ (1) economy and ____________ (2) economy.

• Consumer

• Trade off

• Market

• Command

A market economy is when

• there is a system of free enterprise: producers can decide what to produce, the price of their goods or services, and how much items they will produce.

• there is a system where the government decides what the producers will make, the price of the goods, and how much items they will produce.

• there is a system of free enterprises where consumers decide what the producers will make and how much they will pay to buy products and services.

• There is a system of free enterprises where the producers choose what and how much they will produce but the Government sets the prices.

A command economy is when

• there is a system of free enterprise: producers can decide what to produce, the price of their goods or services, and how much items they will produce.

• there is a system where the government decides what the producers will make, the price of the goods, and how much items they will produce.

• there is a system of free enterprises where consumers decide what the producers will make and how much they will pay to buy products and services.

• There is a system of free enterprises where the producers choose what and how much they will produce but the Government sets the prices.