Why does scarcity exist? Who does it affect, and how does it affect them?
What is a capital resource? Give an example.
If a certain company is using a lot of one type of resource to make their product, what happens to the supply of that resource?
Anya got $12 for her birthday. She considers buying a DVD of her favorite movie for $11. She also thinks about buying a new T-shirt for $14. Then she decides to buy a CD for $10. What is the opportunity cost of her decision? Explain your answer. Give another example of opportunity cost.
What is the short-term consequence of deciding to spend the weekend catching up on lessons, or extra piano practice?
Not all customers are shopping for the same deals. Compare & Contrast the difference between Sam’s Club & Walmart. Sam’s club is ‘owned’ by Walmart - so why would someone want to choose 1 over the other?
What is a command economy? Compare it to a market economy. What is the government role in each?
What are the two types of incentives? What type of incentives should companies give to employees? Give a few examples of monetary incentives.
Are there positive & negative consequences associated with free trade? List a few of each.
What is interdependence and how does it affect the countries involved?
What are some trade barriers? Give a few examples.
What is an export?
Describe specialization?
* TechTown (this is a made up company) is filled with companies that produce
computer parts and software. Describe what TechTown specializes in.
What is the most likely result of increased labor productivity?
What is the main purpose of a market? Would an economic boom in one country - allow it to import more goods from other countries? What would happen in those other countries as a result?
What does relative price compare?
Javier cleans pools in his neighborhood to earn some extra money. His neighbors agree to pay him $10 each week, and at that price, he is willing to set aside enough time to take care of 4 pools. After several days of very high temperatures, the pools become filled with algae. Many neighbors offer him $15 to clean their pools. Would the price increase have an effect on Javier’s business?
What is competition? What changes in supply affect demand? What about cost changes in the production process - how would cost changes affect the supply and cost?
Higher price = __________ quantity
Lower price = __________ quantity
What are some examples of price competition? How does this competition affect consumers?
What does it mean to reach an equilibrium price?
How do banks help the economy grow?
What are the types of resources? What are some examples of human resources?
Scarcity exists because there are limited resources to fulfill unlimited wants and needs. It affects everyone, as individuals, businesses, and governments have to make choices on how to allocate resources. Scarcity leads to competition for resources and can result in higher prices, limited availability, and inefficiency in resource allocation.
A capital resource is a man-made tool or equipment used in the production of goods or services. Examples include machinery, factories, and vehicles.
If a company uses a lot of one type of resource to make their product, the supply of that resource may decrease. This can lead to higher prices for the resource and potentially impact the company's ability to produce their product.
The opportunity cost of Anya's decision to buy the CD instead of the DVD or T-shirt is the value of the next best alternative foregone, in this case either the DVD or the T-shirt. Another example of opportunity cost is choosing to spend money on a vacation instead of saving it for future investments.
The short-term consequence of deciding to spend the weekend catching up on lessons or extra piano practice is that Anya may miss out on social activities or leisure time.
Sam's Club and Walmart are both retail stores, but they have some key differences. Sam's Club is a membership-based wholesale warehouse club, while Walmart is a traditional retail store. Sam's Club offers bulk products and caters more to businesses and individuals looking to buy in larger quantities. One may choose Sam's Club if they want access to discounted bulk products and have the means to buy in larger quantities. Walmart, on the other hand, offers a wider variety of products and is generally more accessible to the general public.
A command economy is one in which the government has complete control over the allocation of resources, production, and pricing. The government has a central role in making all economic decisions. A market economy, on the other hand, is driven by supply and demand, with the government having a limited role in regulating markets. In a command economy, the government controls the economy, while in a market economy, decisions are made by individuals and businesses.
The two types of incentives are monetary incentives and non-monetary incentives. Companies should give employees both types of incentives to motivate and reward them. Monetary incentives include bonuses, salary increases, and profit sharing.
Positive consequences of free trade include increased competition, access to a wider variety of goods and services, and lower prices. Negative consequences can include job losses in industries that are unable to compete with foreign imports and potential exploitation of labor and resources in countries with lower standards.
Interdependence in economics refers to the reliance of countries on each other for goods, services, and resources. It affects the countries involved by creating opportunities for specialization and trade, as well as potential vulnerabilities if there are disruptions in the global supply chain.
Some trade barriers include tariffs, quotas, and embargoes. Tariffs are taxes on imported goods, quotas limit the quantity of imports, and embargoes prohibit trade with specific countries.
An export is a good or service produced in one country and sold to another country.
Specialization refers to the concentration of production on a specific good or service. In the case of TechTown, they specialize in producing computer parts and software.
The most likely result of increased labor productivity is increased output or production.
The main purpose of a market is to facilitate the buying and selling of goods and services. An economic boom in one country may allow it to import more goods from other countries, leading to increased exports for those countries and potentially stimulating their economies.
Relative price compares the price of one good or service to another, typically in terms of their ratios.
The price increase would likely have an effect on Javier's business, as he would have an incentive to clean more pools at the higher price. He may also face increased competition from others looking to offer pool cleaning services at the higher price.
Competition is the rivalry between firms in the same industry or market. Changes in supply can affect demand as higher supply typically leads to lower prices, which can increase demand. Cost changes in the production process can affect supply and cost, as higher costs would result in lower supply and potentially higher prices.
Higher price = lower quantity
Lower price = higher quantity
Some examples of price competition include sales, discounts, and price matching. This competition can benefit consumers by providing them with lower prices and greater choices.
Reaching an equilibrium price means that supply and demand are balanced, resulting in a price at which the quantity demanded equals the quantity supplied.
Banks help the economy grow by providing loans and credit, which can stimulate business investment and consumer spending. They also facilitate the flow of money within the economy and play a role in managing monetary policy.
The types of resources are natural resources, capital resources, and human resources. Human resources refer to the skills, abilities, and labor of individuals. Examples include employees, entrepreneurs, and professionals.