1
What is the main reason that different countries trade with each other?
Different countries specialize in producing different kinds of goods.
How would the price of something would change if a whole lot of people wanted to buy it?
The price would rise.
True or False:
"True" economic communism has never existed.
True
What is the definition of Capitalism?
Private ownership, free market based on supply and demand, and personal wealth growth
What do economists mean when they use the word "scarcity?"
Having too few resources to satisfy everyone.
What is the name of the concept that implies that resources are always in limited supply?
Scarcity
Which of the following countries is an example of a capitalist country?
A. North Korea
B. Japan
C. China
D. Vietnam
Japan
What is the definition of Socialism?
Private ownership with government regulation, free market, wealth gap narrowed through taxing and safety-net systems
There is only one gas station on a stretch of highway. Then two more gas stations open next to the first. Demand for gas does not change during this time.
What will happen to the price of gas on this stretch of highway, and why?
The price of gas will decrease because there is more competition among businesses.
What is a person who purchases goods and services for personal use called?
Consumer
Does scarcity affect supply, demand, or both? Explain why.
It affects both supply and demand.
Supply: When a resource or good is scarce, there is less available for producers to supply to the market. This can lead to higher production costs and limited availability, which typically drives up prices.
Demand: Scarcity can also increase demand because when people perceive something as rare or limited, they often want it more. This is known as the scarcity effect in behavioral economics.
What is Ms. Gilliam's favorite color?
Pink
Stephen Curry begins appearing in advertisements for Under Armour basketball shoes and wears them in games. After the previous basketball season, he was named the MVP of the NBA.
How is the supply or demand for Under Armour shoes impacted by this scenario?
Demand goes up
Which economist believed that the working class would rise up and seize the means of production?
A. Adam Smith
B. Karl Marx
C. Thomas Malthus
Karl Marx
What is the definition of Communism?
shared ownership, government controlled supply and pricing, wealth evenly distributed.
What is Ms. Gilliam's married name going to be after Spring Break?
Mrs. Rayburn
Stephen Curry begins appearing in advertisements for Under Armour basketball shoes and wears them in games. After the previous basketball season, he was named the MVP of the NBA.
How is the market price for Under Armour shoes impacted by this scenario?
Price goes up
Which economist created the idea of capitalism, as well as helped establish the field of modern economics?
A. Adam Smith
B. Karl Marx
C. Thomas Malthus
Adam Smith
Explain what market equilibrium is.
Market equilibrium is the point where the quantity of a good or service demanded by consumers equals the quantity supplied by producers at a specific price. At this price, there are no shortages or surpluses, ensuring market stability. If prices are too high, a surplus occurs, leading to price reductions, while if prices are too low, a shortage occurs, pushing prices up. Market forces naturally adjust prices toward equilibrium over time.
What type of pet does Ms. Gilliam have?
A dog named Bandit.