Refers to the economic problem of having limited resources with unlimited wants
What is scarcity
Things that people must have to survive
What are needs
Things that people would like to have but can live without
What are wants
The direct trading of goods and services between people without the use of money
What is barter
A store receives 1000 rolls of toilet paper and 200 people need it. What is the economic term for the amount of product?
What is a surplus?
Someone who buys goods and services
What is a consumer
Actions done for others in exchange for payment
What are services
Tangible items that people consume or use
goods
Goods and services purchased from the another country
What is import
During COVID, the purchase of hand sanitizer in stores was limited to 2 and the price was high. What was the reason for this? Be specific.
Demand was high and supply was low.
This is the social science that studies the production, distribution, and consumption of goods and services.
What is economics?
The study of how individuals, governments and businesses allocate scarce and surplus resources
What is trade
The effort people contribute to the production of goods and services
What is labor
When workers produce a surplus of a good, what happens to the price?
What is go down?
The more countries trade, the more they become _____________.
What is interdependent?
The result involved in your decision to purchase something.
opportunity cost
When an item leaves a country it is called this.
What is an export?
The factors of production a country has. These are uneven across countries in the world.
What is distribution of resources?
The three basic economic questions each country must ask when developing the economic plan
1) What goods/services will be produced?
2) How will goods/services be produced?
3) Who will buy the goods/services?
List the The four factors of production AND an example for each.
Capital
Entreprenuer
Land ( natural resource)
Labor ( human resource)
Hans is going to the grocery store to buy cereal. After a drought (not enough rainfall) the price of wheat has increased, driving up cereal prices. Hans considers buying the store brand instead of the name brand, but his family likes the name brand better. He considers buying smaller boxes of cereal, but he would not be guaranteed to have enough to meet the demand of his family. – If Hans decides to buy the name brand cereal, he is most likely basing his decision of off….
What is quality or brand?
Explain how the distribution of resources and specialization lead to interdependence. Don't just show the flow. Make sure you explain.
Resources are unevenly distributed in the world forcing countries to specialize in making a few products really well and trading for everything else that they need. Since they are not producing everything their country needs, they rely on other countries to provide the products they need. When countries rely on each other, we say that are interdependent.
Mrs. Duncan took her son, Nick to get new shoes. He went straight to the Nike section because " all the kids wear them". He would not consider other shoes. The Nike shoes were $179. Mrs. Duncan tried to get him to look at Hokas that were $179 because she said they will be more comfortable. What was the consumer choice for Nick and Mrs. Duncan? ( Two answers needed- must give evidence for each response)
Nick - brand ( must explain) " all the kids wear them"
Mrs. Duncan - quality/brand " they will be more comfortable"
The Columbus Crew’s owner announced he was moving the team to Houston, Texas at the end of the season. Use your understanding of price and quality to predict trends of ticket prices for the remainder of the season.
– Either ticket prices will drop because people do not want to support the team or ticket prices will increase because there is a limited amount of games left and people want to see them before they leave.
Saudi Arabia gets their food from the United States because they cannot grow enough to feed all of their people. They trade some of their surplus of oil for it. In terms of exporting and importing, the United States is…
The United States is importing oil OR the United States is exporting food.