Economy Notes Words in RED= go directly on your study guide Words in GREEN= notes that are helpful to write in the margins

#5: The topic that the economy has to deal with is money! What is an economy? #5: The topic that the economy has to deal with is money!

#6. 3 Main Types of Economies Capitalist/Free Market Economy Individual citizens/business owners have the main control of prices/incomes/businesses/goods/ services Countries with market economies: USA Japan Germany Canada

#6. 3 Main Types of Economies 2. Command Economy The government has the main control of prices/incomes/businesses/goods/ services. Countries with command economies: North Korea Vietnam Cuba

#6. 3 Main Types of Economies 3. Traditional Economy Money is not always exchanged between buyers and sellers. People trade items instead of using money to purchase goods/services (called bartering). Places with traditional economies: African countries Haiti Greenland The Amazon

Economy of United States #7: What type of economy do the United States & Canada have? Capitalist/Market Economy

Gross Domestic Product (GDP) #8: What is the term we usually use for a measure of a country’s wealth? Gross Domestic Product (GDP)

GDP #9: Examples of countries with a HIGH GDP (write 1): United States Japan China #10: Examples of countries with a LOW GDP (write 1): Kenya Haiti Afghanistan

Consumers and Producers #11: Consumer= A person who buys goods/services #12: Producer= A person who sells goods/services

Competition Competition in the economy can be a good thing because it keeps prices down! #13: Examples of businesses that compete: Target vs. Wal-Mart Shell vs. BP Burger King vs. McDonalds Apple vs. Samsung

Competition #14: The goal of a business is to make a profit. Profit= money kept after paying expenses

Good vs. Service #15: Good (AKA a product)- An item you buy that you can touch: made/grown by humans Examples: A sweatshirt, an iPad, an apple #16: Service-Work that someone does for someone else Examples: Bus driver, dentist, doctor, hair stylist

Supply vs. Demand How do producers set prices? Using Supply & Demand. #17: Supply: The amount of a good/service available #18: Demand: How much of a good/service people want

Supply vs. Demand #19 In what situation would the price of a good/service be highest?: supply, demand #20: In what situation would the price of a good/service be lowest?

Supply and Demand Questions The iPhone XR has just been released. Many people had to pre-order the phone, and some have to wait weeks before they can actually get it in the mail. Which of the following would be TRUE about the iPhone XR? Low Supply, High Demand High Supply, Low Demand Would the price of the phone be high or low?

Supply and Demand Questions The iPhone 6 is still in stores. There are many in stock, but people are more interested in the new iPhone XR. Which of the following would be TRUE about the iPhone 6? Low Supply, High Demand High Supply, Low Demand Would the price of the phone be high or low?

Supply and Demand Questions Your teacher has 3 computers, and 20 students want to use them. Which of the following would be TRUE about the computers? Low Supply, High Demand High Supply, Low Demand

Supply and Demand Questions There is a prize box full of candy at your school. All the candy has been picked through and there is a lot of gum left over. A lot of students pass over the gum and choose candy bars instead. Which of the following is TRUE about the gum? Low Supply, High Demand High Supply, Low Demand Would the price of the gum be high or low?