economy in the world. definition of economy economy-the way that goods services are produced &...
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Economy in the world
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Definition of Economy
•Economy-The way that goods services are produced & distributed
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Buying and Selling• Producers- People who
provide services & make goods people buy
• Consumers- People who buy goods or use services
• Economy is the all activities of producers and consumers
• Opportunity Cost- The value of the item you didn’t buy
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Economics System• Free enterprise system-
People can own & run own businesses– America runs on this system
• Command economies-Gov’t will decide what will be produced & the price
FREE ENTERPRISE
SYSTEMVS.
COMMAND ECONOMIES
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Bell Work
•What type of economic system do we have?
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Economics Systems• Free enterprise system– America runs on this system
– Entrepreneurs- People who run own businesses
– Profits- Money business makes after pays for cost of business
– Investments- Money that is put into a business to help it succeed
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GDP• Gross Domestic Product (GDP)-
The cost of all goods & services added up in any country–U.S.A. in the trillions of dollars
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Marketplaces• Supply and Demand
– Supply-The amount of any product or service available at any time.
– Demand- How much of a product or service people want to buy
• Low supply=high price
• High supply=low price
• Low demand=low price
• High demand=high price
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Bell Work
•What does Supply and Demand mean?
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Local Economy• Jobs and resources in the particular area
• Examples– Rural economy may be based on farming– Port economy may be based on fishing or
tourism
• Manufacturing economies- Based on making products
• Service economy- Based on providing services
• Local economies are a mixture
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Global Economy• All countries need products and
services from other countries
• Interdependent- Independent, but also rely on others
• Exports- When one country sends its products to another country
• Imports- When a country buys goods & bring them across the border
• Trading expands the nations
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Homework Assignment• I want you to think about 1 product
you have used either today or that you use each day.
• I want you to decide & write who would be the producer of that product.
• I also want you to decide/write who the intended consumer would be and why they would be the consumer.
• This needs to be a ½ page long explanation