Economics 1
What is economics?
The study of people and choices
Before there was transportation (cars, trains, planes) why was trade was limited?
Locations were too far away
The amount money the bank gives you is called what?
Interest Rate
Anywhere buyers and sellers meet to exchange goods and services is called what?
Market
Specialization helps with what?
International trade and creates wealth.
What allows trade to happen faster and at greater distances?
Transportation
What are 3 examples of infrastructure?
roads, bridges, power supply
What is it called when there is a demand for a good is higher than the supply? Example: trying to find water in stores during before a hurricane.
Shortage
If stores make prices too high they could be left over with what?
A surplus
This is how countries work together as one big global economy. Example: hiring people from other countries for your business.
What is infrastructure?
Things that allow for easier production of goods and services.
Why were Cowry Shells used a currency (money)?
They were used because they were scarce.
When there is a surplus (a lot) of a good, companies and stores do what?
Advertise more
What is Opportunity Cost?
Giving up something to make a decision.
When prices go up on the things you buy. It often happens after war.
Inflation
What is a country's GDP (Gross Domestic Product)?
This helps describe a country’s economic activity and wealth.
Why did we move from trading to using money?
It was easier and more efficient.
What causes prices to change?
The supply and demand of a good.
What is specialization?
When businesses focus on what they do best.
What is unemployment?
When people cannot get a job.
Who endorses money?
Governments
A decrease in supply is called what?
scarcity
What is labor?
It refers to any type of work.
Free trade allows what to happen?
The living standards in the world to benefit.
The money the bank pays you based on the money you deposit with them.
Interest