Vocab
Trading one type of good or service for another
barter
another name for a free enterprise system and things can be bought and sold freely
market economy
Name 2 goods
ex: video games, clothes, shoes
A woman who owns a business in which the government sets the prices operates in a market economy.
false, command
new inventions or ways of doing things
innovations
producers have the right to create any goods or services they want
free enterprise system
Name 2 services
ex: tutors, hairdresser, mechanic
If the supply of a product is lower and the demand is high, then the price of the product will rise
the value of an item you didn't buy
opportunity cost
the government decides what goods and services can be made or sold
command economy
Money is used instead of bartering because:
it can be divided into smaller quantities, it's easy to carry, and it can be traded for anything.
Name another reason why money is used instead of bartering?
it's uniform
All economies around the world are the same
false
When you eat a meal at a restaurant, what are all the economic activities involved? Identify multiple ways.
Ex: choose a restaurant (might base off price)
tables, menus, chairs are made by a company.
choose food and the chef making the food gets paid and the server bringing you your food.
the ability of a company, group, or person to focus on a single task
specialization
A good shipped from the U.S. to another country is called an
export
What is an effect of scarcity?
Consumers will not have their needs and wants met.
Bartering is still around today
What is productivity? What often causes great productivity?
Productivity is the amount a company can produce with a certain amount of labor. Specialization and division of labor lead to greater productivity. Work is divided among people and those people get really good at their jobs which can lead to more products in a shorter amount of time.
the process of hiring people to work outside of a company
outsourcing
A good brought in from another place is called an
import
Name a communication innovation.
Name a type of advertising.
email, zoom, facetime
tv, magazines, newspapers, signs
If the goal of a business is make a profit, why doesn't a business raise its prices high enough to make a lot of money?
If prices are too high, then customers won't be able to afford the product. Businesses are also in competition with one another and another business might lower their prices to attract customers. Customers will choose the store with lower prices.