Vocabulary
What is an economy?
A system of producing, selling, & buying goods and services.
A newer version of a video game comes out. What will happen to the price of the old one?
The price will drop (even if only by a little bit)
What type of economy does the US have?
Mixed economy.
Which is a want? Dessert or breakfast?
Dessert
What is scarcity?
When there isn't enough to go around
What is "the money a person/company makes after paying off expenses"?
Profit
After Halloween was over, the store manager noticed that the candy didn't sell as they hoped. What will most likely happen to the prices?
The prices will drop
Give an example of a trade off.
Ex: You want a both a book & a video game. You choose the video game over the book
Which is a need? Bottles of water in summer or ice cream in autumn?
Bottles of water in summer
What is an opportunity cost?
The value of what's given up when making a trade-off
What is another name for a businessperson?
Entrepreneur
Tessa runs a clothing shop with her family. It's a cold day, & many people don't have proper attire for the weather. They only have 5 sets of clothing left. What will happen to the price?
The price will rise.
What do choices lead to?
Trade-offs
Which is a need? Cheap, normal clothes or expensive trending clothes?
The cheap, normal clothes
What is a trade-off?
When you give up something to get another thing
What is "the value of everything a person/company owns"?
Wealth
Rob has an old car that he wants to sell for around $6,000. But before he puts it on sale, he finds out this car is highly sought after by collectors. What is he likely to do to the price?
The price will go up
What is the difference between supply & demand?
Supply is the amount of a good/service. Demand is the want to have a good/service.
Which is a want? Your favorite novel or a school textbook?
A school textbook
What does the law of supply state?
Businesses are willing to produce more of a good/service at a higher price.
What is trade?
The activity of selling, buying, or exchanging good/services
Bob invents a shirt that doesn't get stained after washing. At first, demand is high for the product. But after a while, almost everyone has one already. What might Bob do to the price?
The price will drop
The value of reading the novel to you.
Which is a need? A computer for schoolwork or a video game to play?
A computer for schoolwork
What does the law of demand state?
Consumers will want to buy a good/service at a lower price