In the Real World
This company loses money on their gasoline, but makes money through customer memberships
Costco
Apples are too expensive today, therefore you buy Oranges instead.
Substitutes.
America is the closest example to THIS type of market system (There are only three that we learned about)
Market Economy
Think back to our "Athletes getting paid millions" activity. Ultimately, provide ONE reason why do athletes get paid millions to play games while nurses / teachers / police get paid rather minimally? (There are TWO good answers)
Supply / Demand - Limited number of high skill athletes, People willing to pay to watch
In the example of the video where British sea captains were transporting convicts to Australia, What kind of INCENTIVE ultimately worked when persuading the captains to keep their prisoners alive across the voyage?
PAYMENT, Cash Money, Dollar Dollar Bills,
(For keeping prisoners alive)
When the covid pandemic hit and people rushed to the store; there became extremely hard to find toilet paper (Yikes), which term best describes the lack of TP?
Shortage
The cost of Tortilla chips goes down, therefore, the demand for salsa goes up - (Which term describes this relationship)
Complements
Goods, services, food, and materials are provided based on the needs of the group/community in this economic system
Traditional Economy
According to the LAW OF DEMAND - When prices rise, demand will ___________.
Fall
When you walked into class and there were a lack of chairs, other than the term "Shortage", which term best reflects this simulation (Also starts with an "S")
Scarcity
If you bought a beat up / old used car when you turned 16, but the car lasted / was driveable WAY longer than you expected, another way to say it, is that you got good _____________ out of your it.
Utility
Two months ago, the cost of a TV was $500. Presently the cost of the TV is $400. It's absolutley possible for the TV's cost to go up again in the future but, at the same time, it can also get even cheaper. The phenomenon of cost fluxuation can be refered to as:
Price Elasticity
A central planner or government is the group which pre-determines the amount of goods that society needs (not buyers and sellers) in this type of Economic System
Command Economy
According to the LAW OF DEMAND - When prices drop, demand may___________
Increase
The "Dirty Lake" Activity where students tried to clean up the lake for Hi-Chews, is best reflected using this term:
Cost-Benefit Analysis
Generally speaking, when does the McRib tend to get re-released at McDonalds? (it revolves our the type of meat it's made of)
Pork Prices are Low
You go to the buffet and are on your 3rd plate of food. You are less satisfied with your 4th plate... so on and so on and so on. The best term to describe this:
Law of Diminishing Marginal Utility
The best example of a Command Economy can be seen when looking at this country:
North Korea
According to the LAW OF SUPPLY - When ______ goes up, the quantity of a good goes up (eg. FidgetSpinners)
Price
Our in-class Zoo Activity is best reflected by this term:
Opportunity Cost
During the covid pandemic, one guy bought 17000 handsanitizer kits, but once the demand for them went down he was left with a garage full. In the end he had a ____________ of hand sanitizer.
Surplus
Gasoline, Drugs, Beachfront Property, Pumpkin Spice Latte's
Inelastic Demand
A Market Economy generally operates functionally / properly when these two factions / groups of people can operate freely: (What are the two factions / groups of people)
Buyers + Sellers
According to the LAW OF SUPPLY - When the price of a good falls, the ____________ of the good also falls
Supply
Other than"Productivity", Our In-Class Book Factory Activity best reflects this term:
Specialization + The Division of Labour