You must MAKE something…You will use your item to barter Trade & Currency Market Day is TOMORROW! You must MAKE something…You will use your item to barter

What are the 3 Basic Questions of Economics? What to produce? How to produce it? For whom to produce it? Produce = to make

“Crucial Camp Terms”…7 Definitions Scarcity: limited supply, high demand (Not enough of a product for consumers) Abundance: More of something than is wanted or needed Trade off: When you have to give up something desirable in order to gain something else that is equally desirable Voluntary trade: is a “Win-Win” Both parties get something they want!

“Basic Econ Terms…7 Definitions Currency: Money Barter: Trade without using currency Specialization: When a country (or person) is known for being the best at producing something. EX: Japan specializes in making cars and computers

Trade & Specialization People and countries rarely produce ALL of the goods & services they want or need. Instead, they specialize in a limited variety of goods & services and then trade with others to get what they want. In voluntary trade, both parties benefit.

trade without money is called barter

Bartering & Entrepreneurship You are a entrepreneur (business owner) who specializes in making a product of your choice In order to be a successful entrepreneur, you should try to make something other students (consumers) want. It should also be high quality.

Barter Advertise or share your product. Decide which good produced by another student you would like to have. 4-5 minutes to barter for the good you want. You may make as many trades as you wish.

Questions Did everyone get the thing he or she wanted the most? Why or why not? How many trades did it take to get the good you wanted? Why? What would you do differently if you did this again?

Questions Did you get the good you wanted? Why or why not? Did using money make it easier or harder to make a trade?

Barter & Currency Barter is inefficient because there must first be a coincidence of wants. For trade to take place, each person must want what the other person has and must be willing to trade for it. Currency makes trade easier and more efficient because a coincidence of wants is not required.

Using money lowers the cost of trading by reducing the time and resources required for finding a trading partner. This allows for more time for the production of goods and resources. By reducing the cost and time of trading, currency allows people to specialize more in what they produce. This, in turn, results in much greater productivity & higher standards of living.