ECONOMICS REVIEW Test is Tomorrow!!!. Items that are produced and sold in markets are called what?
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Transcript of ECONOMICS REVIEW Test is Tomorrow!!!. Items that are produced and sold in markets are called what?
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ECONOMICS REVIEWTest is Tomorrow!!!
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Items that are produced and sold in markets are called what?
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Goods
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Which of the following is NOT a good?
a. iPodb. Carc. Hairdresserd. Apples
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C!A HAIRDRESSER IS A SERVICE, NOT A GOOD.
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AN AMENITY THAT PROVIDES A PUBLIC NEED, OR THE ACTION OF HELPING OR
DOING WORK FOR SOMEONE IS CALLED A WHAT?
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A SERVICE
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Services: TeachersDoctorsHairdressersDentistsLawyersLandscaping CompaniesLawn Care servicesCar ValetsPolice OfficersFirefightersCar Mechanics
Goods:FurnitureGroceriesCarsShampooTelevisionsiPad, iPhone, etcLampsComputersClothesShoesSkateboardsVideogames and consolesPet supplies
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GOODS: PHYSICAL ITEMS YOU BUY.
SERVICES: THINGS YOU PAY PROFESSIONALS TO DO FOR YOU.
Think of it this way!
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A system in which goods and services are bought, sold, and produced is called what?
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Economy
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What are the 4 different types of economy?
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1. TRADITIONAL ECONOMY2. MIXED MARKET ECONOMY
3. MARKET ECONOMY4. COMMAND ECONOMY
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This type of economy depends heavily on agricultural products. Most people in this type of economy are farmers. Bartering (or the trading of a good or service for another) can often be found in this type of economy.
Name this economy!
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TRADITIONAL ECONOMY!!!
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Name this economy!!
This type of economy allows ALL decisions concerning the production, selling, and buying to be made by the citizens. The people are allowed to own their own private businesses and have 100% control. They may charge any price for their goods and services.
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MARKET ECONOMY
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Name this economy!
It is a type of economy in which decisions concerning the production, sell and jobs are SHARED by the government and its citizens. Most countries in the world have this form of economy.
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MIXED MARKET ECONOMY!
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Name this economy!!
It is a type of economy in which all decisions concerning the production, sell, and jobs are made by the government. There is NO private ownership in this type of economy.
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COMMAND ECONOMY!!
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WHAT TYPE OF ECONOMY DOES THE UNITED STATES HAVE?
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MIXED MARKET ECONOMY
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WHAT IS A PERSON WHO OWNS AND OPERATES THEIR OWN BUSINESS
CALLED?
Hint: You were all acting as this during your Shark Tank Projects!
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ENTREPRENEUR!
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NAME THE 3 DIFFERENT TYPES OF RESOURCES USED IN AN ECONOMY.
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1. NATURAL RESOURCES2. HUMAN RESOURCES (OR
HUMAN CAPITAL RESOURCES)3. CAPITAL RESOURCES
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THEY ARE THE RAW MATERIAL THAT ARE FOUND IN NATURE AND ARE USED TO MAKE FINISHED PRODUCTS. AN EXAMPLE WOULD
BE A TREE THAT IS USED TO MAKE FURNITURE.
What kind of resource is this?
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NATURAL RESOURCE
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THIS REFERS TO THE LABOR, OR THE WORK EXERTED BY PEOPLE, THAT IS
USED TO MAKE PRODUCTS.
What kind of resource is this?
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HUMAN RESOURCE (HUMAN CAPITAL RESOURCE)
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THIS REFERS TO THE MATERIALS THAT ARE USED TO HELP MAKE THE
PRODUCT.
What kind of resource is this?
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CAPITAL RESOURCE
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Name what kind of resource each picture represents: Natural, Human, or Capital?
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The popcorn seller who helps to pop the popcorn is the Human Resource. His labor helps to make the popcorn.
The popcorn kernels are the natural resource. Corn grows in nature and the kernels can be extracted and dried to create popcorn kernels.
The popcorn popper is the Capital resource. It is the machinery that helps to produce the product, which is popcorn.
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WHAT ARE THE 3 BASIC QUESTIONS OF ECONOMICS?
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1. WHAT TO PRODUCE?
2. HOW TO PRODUCE IT?
3. WHO WILL RECEIVE/BUY IT?
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A PERSON OR BUSINESS THAT USES OR BUYS GOODS AND SERVICES.
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CONSUMER!
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A PERSON OR BUSINESS THAT SUPPLIES GOODS OR SERVICES TO
MAKE A PROFIT.
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PRODUCER!
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THE AMOUNT OF GOODS AND SERVICES THAT A PRODUCER MAKES.
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SUPPLY
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THE AMOUNT OF GOODS AND SERVICES THAT CONSUMERS ARE
WILLING TO BUY.
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DEMAND
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THE DIFFERENCE BETWEEN THE PRODUCERS’ COST AND THE SELLING
PRICE.
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PROFIT
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UNLIMITED WANTS OF PEOPLE WITH ONLY LIMITED RESOURCES TO FULFILL
THOSE WANTS OR DESIRES
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SCARCITY
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WHY DO NATIONS TRADE?
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USUALLY, EVERYTHING THAT A NATION NEEDS CANNOT BE PRODUCED WITHIN THEIR OWN COUNTRY. OR...A COUNTRY MAY BE ABLE TO BUY A PRODUCT FOR LESS FROM ANOTHER
COUNTRY THAN IT WOULD BE ABLE TO PRODUCE IT THEMSELVES.
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GDP STANDS FOR WHAT?
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GROSS DOMESTIC PRODUCT
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THE HIGHER THE GDP OF A COUNTRY, THE HIGHER THE WHAT?
A. HIGHER THE LITERACY RATEB. THE HIGHER ECONOMIC STRENGTH AND WEALTH OF THE COUNTRYC. THE HIGHER THE COUNTRY’S STANDARD OF LIVINGD. ALL OF THE ABOVE
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D!!
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WHAT IS GDP? DEFINE IT.
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THE GDP OF A COUNTRY IS THE TOTAL VALUE OF THE GOODS AND SERVICES PRODUCED IN
A COUNTRY DURING A SPECIFIC YEAR.
IT IS THE MEASURE OF A COUNTRY’S ECONOMIC STRENGTH AND WEALTH
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GOODS FROM OTHER COUNTRIES BROUGHT TO THE USA TO BE SOLD OR
CONSUMED
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IMPORTS
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GOODS SOLD FROM THE USA TO OTHER COUNTRIES
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EXPORTS
“THINK EXIT”
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NATIONS DEPEND ON TRADE WITH ONE ANOTHER FOR GOODS AND SERVICES
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INTERDEPENDENT
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WHAT IS A TRADE BARRIER?
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SOMETHING THAT THE GOVERNMENT USES TO LIMIT FREE TRADE BETWEEN
COUNTRIES.
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WHAT ARE THREE EXAMPLES OF TRADE BARRIERS?
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1. EMBARGO: RESTRICTIONS ON IMPORTS AND EXPORTS
2. TARIFF: A TAX (OR FEE) ON IMPORTS TO MAKE THEM MORE EXPENSIVE
3. QUOTA: A LIMIT ON THE NUMBER OF IMPORTS THAT CAN ENTER A COUNTRY
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TEST TOMORROW! YOU GOT THIS!!