Introducing the economy

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Businesses affected by the economy

In your book write the word economy.

Using a sentence try and define what you think this word means.

Economy

An economy consists of the economic system of a country or other area.

It is made up by the labour, capital and land resources and includes the manufacturing, production, trade, distribution and consumption of goods and services.

Economy

Consumer spending – the total spent by shoppers throughout the country

GDP (Gross Domestic Product) -  market value of all officially recognized final goods and services produced within a country in a given period of time : Here

Exports – goods produced in one country and sold overseas

Imports – goods purchased from another country Recession – two consecutive quarters of negative

economic growth as measured by a country's gross domestic product (GDP)

Key Terms

The economy is doing well. The economy is doing poorly.

Refer to the following factors: Employment * Small businesses starting Housing * International Holidays Cars * Domestic Holidays Groceries * Luxury items

Create a flow chart to show what will happen when:

An economy is shaped primarily through Market Forces. Write the following statement.For each of the market forces, in your own words describe how each will force a change.The forces that come from:

1. The amount of a product available What will happen if there is more or less available?

2. The customers who will buy the productWhat will happen if there are more or less customers willing to buy the product?

Market Forces