Chapter 1.2 The Economy and Your Education

What is the economy?

• Will never change.

• All the activities related to making and distributing goods and services

• The government reducing poverty

• The international trade

Why is it important for you to understand the economy?

• It is needed to understand when to save

• It is needed to understand when to spend

• It is important to understand when you can spend and when to save.

Explain the concepts of supply and demand within a market economy.

• It is based on supply

• It is based on demand

• Prices are based on supply and demand. These two forces work together to create and equilibrium price.

• The growth of the economy.

What is retraining?

• Learning new and different skills in order to prepare for a new career field

• YouTube

• Instagram

• SnapChat

What is the business cycle?

• Prices decline.

• Growth periods, spend less and save.

• Learning new skills

• The ups and downs of the economy: recover, peak, recession and trough.

List the four stages of the business cycle.

• pre-industrial, urbanizing/industrializing, mature industrial and post-industrial

• prophase, metaphase, anaphase, telophase.

• heavy, light, radiation, present day era

• peak, recession, trough, recovery

How does the business cycle affect you as an individual?

• During growth periods you should spend less and save

• During a decline, you can find good values if you have cash to spend

• Both are correct.

Explain why people tend to spend more money during economic growth.

• Prices are out of control.

• During economic growth people spend money because they are optimistic and times are good.

• During economic growth people spend money because they are pessimistic and times are bad.

• Prices decline.

Explain why it is important to have cash (spending power) in a recession.

• The banks are going bankrupt.

• People are stealing money.

• Prices decline so if you have cash you can find the best values

• You can store the money in your mattress.

How is tuition different from fees?

• They are the same

• Tuition is for instruction at a school and fees are special expenses.

• Tuition is for special expenses and fees are for instruction at a school .