CH 2 - LESSON 2 ECONOMICS

CH 2 . Lesson 2 Exploring Economics

Glossary

Glossary

HOW MUCH DO YOU KNOW ABOUT ECONOMICS?

Lee'ts test you! https://wordwall.net/resource/13021898

Economics is the study of how and why people make, buy, and sell things.

Economists ask three questions

Procesos

How should they make and sellthem?

What goods and services should people offer?

Who will use them?

What goods and services should people offer?

In order to make goods and offer services, people need resources.

Resources are the things that people need to make goods and offer services.

There are four major kinds of resources:

Having the right resources is just the first step in makingsomething.

• How much should you make?
• What price should you charge for it?

These choices are shaped by the law of supply and demand.

Supply is how much of something people want to sell. It is also how much of a good or service is available. Demand is how much of something people want to buy. It can also show how strongly someone wants to buy something.

EXAMPLE

EXAMPLE

Other things affect supply and demand, such as scarcity, or lack of availability.

The opportunity cost of something is based on what you gave up to make or buy it.

What happens to the price of an item when its supply increases?

What happens to the price of an item when the demand for it increases?

What is the equilibrium point?

Managing and Measuring Economies

There are 4 major kinds of economic systems.

MARKET

TRADITIONAL

MIXED

COMMAND

When an economy grows slowly or shrinks, its called a recession.

One sign of economic trouble is inflation.

Trade in World History

Trade takes place when each side has something that the other side wants. Trade between countries is based on exports and imports.

Early civilizations first traded with each other by bartering. When people barter, goods are traded for other goods.

Once money was invented, trade became simpler. Money has an agreed-upon value. This means it can be traded for almost anything. Today most countries trade with each other. This is called globalization.

THANK YOU FOR YOUR ATTENTION!

W5 - CLASSWORK / HOMEWORK

• On your binder, do your weekly activity ''W5 - Guided Reading'' (instructions on google classroom).

• Work on the Smart Book Review on connectED.