Supply and demand
What is supply?
The amount of a good
What is inflation?
Inflation is the increase in the prices of goods and services
What is the difference between a recession and depression?
A depression is more serious and severe than a recession
What happens to the price of chocolate if the supply of cocoa decreases?
Increases
What is demand?
How much people want a certain good
What is deflation?
Deflation is the decrease in the prices of goods and services
What are 2 possible causes of a recession?
Supply shock and demand shock
What happens to the supply of Iphones if it becomes very hard to get nickel (an important metal that is used in Iphones)?
Decreases
Name one factor that can affect the supply of a product.
Price of production
Returns from alternative activities
The number of sellers
Name one factor that can cause inflation
Causes include an increase in aggregate demand, more money circulating in the economy, and higher costs of production.
What are some possible causes of a depression?
Stock market crash
Deflation
Loss of confidence (If people think the economy will soon crash, they will alter their behaviors in a way that will actually make the economy worse)
Economic shock: an unpredictable event that causes widespread economic disruption, such as a natural disaster or a terrorist attack.
If the demand of bananas is very high, is the supply very high or low?
Very low
Name one factor that can affect the demand of a product.
Price of product.
Tastes and preferences.
Consumer's income.
Availability of substitutes.
Name one factor that can cause deflation
Causes include a decrease in aggregate demand or an increase in aggregate supply.
In a recession or depression, will the unemployment rate become higher or lower?
Higher
If there is a drought and a farmer can not grow as many avocados, will the price of avocados be higher or lower?
Higher
Why is understanding supply and demand important?
In order to have a stronger understanding of economics and be able to understand possible price changes in products that you are buying
During the auction, why did the price of biscuits go up each round? What cause of inflation does this represent?
The price went up because more money was being put into the system. This represents quantity theory of inflation
What is unemployment rate?
The rate of people in a society that do not have a job that are able to work and want a job
If everyone starts trying to be healthier, will the demand for sweets be higher or lower?
Lower