Vocab 1
How much of something that is available
Supply
The desire for the product or service
Demand
The combined total value of a countries economy
Gross Domestic Product (GDP)
Physical things that are produced to be sold
&
Actions or work that someone does for a price
Goods
&
Services
Ancient Egypt purchased precious metals and jewels from the Kingdom of Kush. The Kingdom of Kush would purchase food from Ancient Egypt. Egypt was ______ the precious metals and jewels from Kush and ______ food to Kush
Importing / Exporting
There's more supply than demand
Surplus
The people that buy or use the goods and services
Consumers
When countries, businesses or people concentrate only on producing certain goods and services based on their resources
Specialization
The study of people, businesses, countries etc use their resources
Economics
When a new toy is released, the company starts by selling it for $40. They have 50,000 toys, but only 10,000 people want to buy it. After a few weeks, they lower the price to $25, and now exactly 45,000 people want to buy it, and they have 45,000 toys left. The price of $25 is called what?
The Equilibrium Price
There's more demand than supply
Shortage
Human effort, the work of people
Labor
Goods and services sent out of a country to another country
Export
The average wealth of a citizen in a country
Bonus: Write the formula
GDP per Capita
GDP / Total Population = GDP per Capita
A popular video game company has 50,000 copies of its new game ready to sell. 10,000 people bought it when it was released at $80, many people decided to wait. This situation deals with how much the company has available and how much people want to buy.
Bonus: The game dropped in price just a few weeks later. Why? (USE VOCAB WORDS)
Supply and Demand
Bonus: There wasn't enough demand at that price / There was too much supply at that price / $80 was not the equilibrium price
The people that make goods or provide services
Producers
Everything needed to produce goods and services like money, machines, people, land, raw materials etc.
Resources
Material wealth. Things like money, machines, factories and tools used in producing goods and services
Capital
Goods and services brought into a country from another country
Import
When making a pair of sneakers, the rubber might come from Malaysia, the fabric from Vietnam, and the design from the United States. All these different parts and places are connected because they rely on each other to create the final product. This reliance is called this.
The 'perfect' price where supply meets demand
Equilibrium Price
Supply of goods and services is limited
Scarcity
When people, businesses, or countries rely on each other to get the goods, services and resources that they need
Interdependence
The exchange of goods and services within a country
Domestic trade
A country focuses all its farming on growing only a specific type of coffee bean because its climate is perfect for it. Because they focus on coffee, they often have to get their cars and electronics from other countries. This situation shows both how the country excels and how it relies on others.
Specialization & Interdependence