Economics Unit Study Guide

Have a complete understanding of all four economies studied: Traditional: all transactions are based on trade or bartering goods. Children are taught the skills of their parents. A traditional economy is what exists in primitive cultures where most activity is focused on providing food and survival. Command: The government decides how much of every good will be produced. The government sets the prices. The government assigns people their job. Example: North Korea and Former USSR Market: the people are free to decide what to produce, how much to charge and consumers are free to decide what to buy. No government regulation. Mixed: free markets with government oversight, and even some government participation. Some businesses may need more government oversight than others. Example: USA

Have a complete understanding of supply and demand When there is a high demand, but low supply. the cost of the commodity is very high (the price goes up). When there is a low demand, but a high supply, the cost of the commodity is lower (the cost goes down).

Have a complete understanding of the Silk Road The Silk Road developed mainly because certain resources were not available in all areas. So the people needed to trade with far away lands. Societies were influenced when trade involved more than just goods. The civilizations also traded their religion, culture, ideas, values, beliefs and technology. Cities and towns along the routes were also influenced by the profits they made from the travelers. Buddhism spread east from India to China and Japan. The Black Death spread west and decimated the population in Europe.

Have an understanding of the West African Kingdom’s Trade Ghana, Mali and Songhai traded with many other nations giving them economic prosperity. The West African Kingdom’s traded gold and salt. Mansa Musa was an important ruler in West Africa due to his wealth and the role he played in spreading the Islam religion. He caused runaway inflation by giving away so much gold during his Hajj to Mecca.

Have an understanding of Mesopotamian Trade The Tigris and Euphrates rivers made trade easier which in turn was very profitable for them. Being located near water helps with trade and transportation. They traded wheat, barley, flax, dates, fish, fowl and reeds (for stylus, mats and building materials).

Have an understanding of Roman Trade The Romans wanted silk, cotton, spices, ivory, wild animals, metals and gems. They traded over the Silk Road. They used the Romans Roads within the empire and hired guides once they were outside the empire. The Romans had agriculture, pottery, glassware, weapons, tools, jewelry and textiles

Describe and give examples of the following resources: Natural Resources: naturally made in nature such as oil, air, sun, water, timber, livestock, vegetation, and fish

Human Resources: people who do the jobs that provide services such as farmers, fishermen, lumberjacks, merchants

Capital Resources: products and supplies used in the production of goods and services such as money, boats, tools and buildings