📦 Wants vs. Needs & Goods vs. Services
This type of purchase includes items like designer sneakers or the newest iPhone model.
What is a want?
Land, labor, capital, and entrepreneurship are collectively known as these.
What are economic resources?
When Taylor Swift tickets go on sale and millions of fans rush to buy them, but there aren’t enough tickets, this is happening.
What is high demand and low supply?
GDP is the acronym for this, a measurement of an economy's health.
What is Gross Domestic Product?
When the U.S. buys coffee from Colombia, this is an example of this type of trade.
What is importing?
These are things essential for survival, such as water, shelter, and food.
What are needs?
A factory, machines, and money used to start a business fall under this category of resource.
What is capital?
If there’s a surplus of smartphones no one wants, companies might do this to prices.
What is lower them?
When the economy is booming, businesses are hiring, and people are spending, we’re in this phase of the business cycle.
What is expansion?
When a U.S. company sells wheat to Japan, it’s engaging in this.
What is exporting?
A haircut, car wash, or Uber ride are examples of this category.
What are services?
This type of economy, like North Korea’s, is heavily controlled by the government.
What is a command economy?
When a new video game console is released and it’s in limited supply, this usually happens to the price.
What is it increases?
A sharp drop in GDP for six months or more is called this.
What is a recession?
These taxes on imported goods make foreign products more expensive.
What are tariffs?
A laptop, a loaf of bread, or a bicycle are all examples of this category of tangible items.
What are goods?
In this type of economy, like Japan, decisions are mainly made by businesses and consumers.
What is a market economy?
Gas prices going up after a hurricane hits oil refineries is an example of this economic principle.
What is a shortage?
During this phase of the business cycle, economic activity hits rock bottom.
What is a depression?
Nike designs shoes in the U.S. but manufactures them in Vietnam. This is an example of this practice.
What is outsourcing?
Buying a Tesla to drive to work and using a car-cleaning app to detail it involve these two types of economic products.
What are goods and services?
A farmer growing organic vegetables and selling them at a local farmers market uses these two types of resources.
What are land and capital?
This law says that as prices go up, producers want to sell more, and as prices go down, buyers want to buy more.
What is the law of supply and demand?
In 2020, the global economy saw a major downturn due to COVID-19. This is an example of GDP being affected by this, an ___________ shock.
What is an external shock?
This term refers to when a country sells more than it buys.
What is a trade surplus?