1. Economies

2. Economy is...

3. The production, distribution, trade and consumption of GOODS and SERVICES.

4. A market is where goods and services are bought, sold or traded. A Free Market Economy is an economic system where merchants and consumers can buy, sell or trade FREELY. The United States has a free market economy system.

5. A consumer is...

6. Any person or company who buys or trades for goods or services.

7. Government does NOT have money... Governments must tax citizens in order to support their needs. Typically, the rich are taxed higher than the poor and then have the resources spread around (giving some of it to the poorer people.)

8. Socialistic economy

9. Government controls some aspects of the economy. Takes money from the wealthy and redistributes it to the poor. Makes certain government controlled things available to everyone – education, health care, food, jobs and retirement.

10. Communist Economy

11. Supply and Demand Supply – The amount of goods or services. Demand – What the consumer wants.

12. Law of Supply – When supply increases, the price decreases. Law of Demand – When demand increases, the price increases.

13. Inflation and Deflation Inflation – When the money supply increases, so the VALUE of money decreases. Deflation – When the money supply decreases, so the VALUE of money increases.