Trading Post
What is 'bartering'?
Trading items instead of buying them
Not using money to buy things.
What is 'income'?
The money that someone earns by doing a job (providing a good or service).
It's the amount of money a person gets paid to do a job.
Name 3 needs
Food
Water
Clothing
Shelter
What is the difference between a good and a service?Give an example of each
A good is something you can touch (table, car) and a service is provided to you, but you can't touch it (barber, song writer)
What is a producer? Give an example.
A producer is someone who makes a good or provides a service.
Example: artist, dentist
Why is bartering difficult?
Sometimes there must be several different trades before you get what you want.
Bartering can be complicated and take a long time.
What is the name of the monetary unit used in Mexico?
Peso
What is a want and why is it called a want?
A want is something you wish to have, but you do not need the item to survive.
Examples of wants: designer clothing, junk food, toys
What is a capital resource? Give 2 examples
A capital resources is something used to make something else
Need 2 examples
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What country made the first money? When did this happen (approximately)?
China, in approximately 3,000 years ago (1000 BCE)
Define import and export
Import: buying things to bring into your country
Export: selling things to other countries
In banking, what does the word 'withdrawal' mean?
It means to take money out of your bank account to use somewhere else. You can use the money to buy something, give to someone, or put into another bank account.
EXAMPLE: I went to the bank to withdraw $20 to go to the movies with my friends.
Explain 'opportunity cost' and give an example of one.
Opportunity Cost: when you choose to spend your money on one thing, you give up the opportunity to spend your money on something else.
Example needed
Name the 4 characteristics of money.
portable (you can carry it around)
divisible (can be divided into smaller amounts)
durable (lasts, doesn't fall apart)
recognizable (you know how much it's worth and where it's from)
How is a producer also a consumer? Give an example of this
Producers use resources to create new things. When a producer uses something to make something new, he/she is consuming the product to create a product.
Example: Computer programmer uses electricity, paper, human resources to create a new video game
How are import and export related?
They both have to do with sending items into and out of a country.
The country sells extra goods/services it produces and then buys the goods/services it can't get by itself.
If people could just print more money, it would become worthless (this is called inflation). There has to be a limit to the amount of money available for it to be worth anything.
In the past, the amount of money was connected to the amount of gold stored in the country.
Why are food, water, shelter, and clothing needs?
You need them to survive in the world. If you do not have these items you might not live.
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Why do people usually have more wants than needs?
Because needs are very basic and there are only 4 of them.
Once you have all your needs, you usually spend your money/time on getting wants to make your life more enjoyable.
Why do producers make advertisements?
Advertisements encourage people to buy whatever the producer is selling. This helps the producer to make money.
Why do countries trade?
Most countries cannot make ALL the things they need.
It is easier to specialize in making something and then selling it, rather than trying to make everything a country needs
Paying "interest" means....
Paying back extra money when you borrow money from a bank or credit cart
EXAMPLE when you pay 18% interest: If you borrow $100 you must pay back $100 + $18=$118
Name the 3 types of resources and give an example of each.
Natural: things made by nature that people can use to create a product (Example: wood)
Human: people needed to produce goods & services (Example: factory worker, teacher)
Capital: goods used to make other goods (Example: factories-->cars, leather-->shoes)
Of the 3 types of resources, which one is the most used?
(open-ended response)
A correct explanation needs to convince the class your answer is the best.
Explain how supply and demand are connected to prices.
When there is a small supply, the demand usually goes up; therefore the price goes up.
When there is a big supply, the demand usually goes down; therefore the price goes down.