What is the Economy?
Does the United States have a market economy or command economy?
market economy; producers decide what to make and what price to set, not the government
Name one type of currency.
US dollars, classroom dollars, pasos, euro, etc.
Any type of money used in a particular place
What does scarcity mean?
The amount of a resource is limited
Name a type of innovation that connected the world?
Boats, planes, trains, phones, internet, etc.
What is the difference between a need and a want?
Needs are required for survival; wants are things you want to have but can survive without
Any trade of services/goods for services/goods
What does advertising do?
Use public notices to bring peoples attention to goods/products
What is job specialization?
When one person, group, or company focuses on a single task. Leads to higher productivity and quality of goods
Name an example of a need and a want.
*varying responses*
What is a problem with bartering?
There isn't a set price for goods/services. The use of currency creates a set price
What do incentives do?
Incentives encourage people to take actions, such as make a purchase
What is the difference between an import and export?
Imports are goods brought into a region and exports are taken out of a region
What is the difference between a producer and consumer?
Producers makes goods or services; consumers buy goods and services
What is inflation?
A rise in the usual price of many goods and services.
What makes an ad appealing?
Low prices, size, colors, etc.
What is a benefit and a cost of globalization?
Cost: increased competition for jobs and goods, outsourcing, and environmental harm
Name a type of public good the government provides.
Schools, roads, police departments, firefighters, national parks, etc.
What is the difference between supply and demand?
Supply is the amount of a product businesses have; demand is the amount of a product consumers are willing to buy
How do savers and borrowers benefit from banks?
Savers earn interest (make money) through banks, and borrowers get loans from banks.
What is it called when one country's economy relies on other countries?
interdependence