Economic Basics
What is a cost?
Something you give up when making a choice
What is a market economy?
An economy where decisions are made by buyers and sellers
What is a market?
A place where buyers and sellers meet to exchange goods or services
What is inflation?
When prices go up over time
What is productivity?
How much a worker can produce in a given time
What is a benefit?
Something you gain from a choice
What is a traditional economy based on?
Customs and traditions
What do buyers do in a market?
Purchase goods or services
What is deflation?
When prices go down over time
What is standard of living?
The level of wealth, comfort, and access to goods and services
What is an economic issue?
A problem related to how resources are used
Who makes decisions in a command economy?
The government
What is a product market?
Where goods and services are sold to consumers
What is unemployment?
When people who want jobs can’t find them
How does innovation help productivity?
It can make work faster or more efficient
Give an example of a cost-benefit decision.
Buying a new video game with birthday money
Cost: No money left for snacks or clothes
Benefit: Enjoying the game and having fu
Walking to school instead of taking the bus
Cost: Takes more time and energy
Benefit: Saves money and gets exercise
Which economic system allows the most freedom for consumers?
Market economy
What is the labor market?
here workers offer labor and employers seek to hire
Name 3 economic indicators
Inflation, unemployment, total production, income, economic growth
Give an example of an innovation that improved the economy
Tech, inventions
Why is understanding costs and benefits important in economics?
It helps people make better choices with limited resources
Give one disadvantage of a command economy.
lack of freedom or innovation
What is a financial market?
Where people trade money, stocks, or investments
Why are economic indicators important?
They help us understand the health of the economy
How does productivity affect standard of living?
Higher productivity can lead to more goods and better living conditions