Sectors
How many main sectors of the economy are there?
4
I trade $5 for 2 of my friend's delicious homemade cupcakes. This is called
A voluntary exchange
This is what you lose by deciding to choose one alternative over another.
opportunity cost
True or false. Henry Ford invented the automobile.
false
You use a credit card to buy new school supplies. Did you make money or lose money?
Lost money
These are the 4 main sectors of the economy.
households, private businesses, banks, & government
Scoopz sells $1.50 ice cream scoops. Dairy Queen opens less than a mile away, and they only charge scoops for 75 cents each. What should Scoopz do in order to keep customers?
Improve their customer service and decrease their prices.
This is a tool that helps you keep track of how much money you spend and save.
budget
True or false. Henry Ford invented the assembly line.
false
The bank loans you $1500. Did you make money or lose money?
Made money (BUT... you will have to pay it back!)
The largest sector of the economy.
Government
BOGO, free shipping, candy bars on sale for $1 each today
price incentives
A discount on a good or service to convince you to buy it.
price incentive
Workers specialize at each station. They are responsible for certain parts of the car and divide the work.
You earn a full ride scholarship to the University of Georgia. Go Dawgs! Did you make money or lose money?
Made money. Scholarships are free money!
This sector is responsible for providing the goods and services needed by the people.
Private businesses
Walt Disney took on the risk of starting a business based on the idea of an animated mouse. One might call him a(n)
entrepreneur
Money the bank allows you to borrow.
Loan
Why could Ford charge lower prices for his cars?
The assembly line allowed cars to cost less to be made.
Name a public good the government provides.
This is what you call the money that the government collects from your income to pay for public goods and services.
Tax
Name a risk of starting a business.
answers vary
When this improves, businesses are more successful.
productivity
What happens to sales when the price of something goes down?
sales go up
Name a public service the government provides.
Highways, roads, parks, public schools, etc.