Economy Basics
What is an economy?
A system where people make, buy, sell, and use goods and services.
What is scarcity?
When there is not enough of something for everyone.
What is demand?
How much people want something.
BONUS POINTS: How much they want something for the price it is being sold at
What is trade?
Buying, selling, or exchanging goods between people or countries.
What does international mean?
Between countries.
What is GDP?
The total value of goods and services a country produces.
What is a natural resource?
Something from nature that people use, like water, trees, or oil.
What is supply?
How much of something is available.
BONUS POINTS: How much businesses are willing to sell
What is a tariff?
A tax placed on goods coming in from another country.
What is a treaty?
An agreement between countries.
What is inflation?
When prices go up over time.
What is the tragedy of the commons?
When people overuse a shared resource until it is damaged or gone.
What usually happens when demand is high and supply is low?
Prices go up.
Why might a government use a tariff?
To protect local businesses or make money.
Why do countries make international agreements?
To solve shared problems and follow common rules.
Why are households and businesses connected?
Households buy from businesses and businesses pay households for work.
Why do scarce resources often cause conflict or hard decisions?
Because many people want something that is limited.
What usually happens when supply is high and demand is low?
Prices go down.
What is one negative effect of tariffs?
Prices can go up and trade can become harder.
What is one shared global problem countries may need to cooperate on?
Climate change, war, trade, poverty, or money problems.
What is one reason governments care about the economy?
It affects jobs, prices, and how people live.
Why is managing resources important?
So they last longer and more people can benefit.
Why did prices rise in your auction when there was only one item left?
Because scarcity and high demand pushed the price up.
Why can tariffs hurt international cooperation?
They can cause conflict, trade wars, or unfairness between countries.
Why is cooperation important even when countries disagree?
Because shared rules can reduce conflict and help solve problems.