Civics Core 100, Goal 8
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Transcript Civics Core 100, Goal 8
Civics Core 100, Goal 8
The learner will analyze
features of the economic
system of the United States.
Decisions
are made in free markets
based on the interaction of supply
and demand
AKA : capitalism
Private citizens own the factors of
production
Individuals
carry on their economic
affairs freely, but are subject to some
government REGULATION.
Opposite
of Market Economy
The individual has little, if any
influence over how the basic
economy functions
The government tells produces what
to do
Belief
that the means of production
should be owned and controlled by
society
Government owns the major factors
of production but PRIVATE ownership
of small businesses
Economies
based on custom or habit
Traditional methods and materials
are used to make items in this
economy
The
money a
business
receives for its
products or
services above
its costs
Primary purpose
of business
The
struggle that goes on between
buyers and sellers to get the best
products at the lowest prices
WHAT
to produce?
HOW to produce?
FOR WHOM to produce?
Coins
and paper money
Money doesn’t have value by itself
– The have value only because we accept
that they have value
Various
quantities of a good or
service that producers are willing to
sell at all possible market prices
Opposite of demand
The higher the price, the more
producers will be willing to make.
The lower the price, the fewer items
they want to make
Desire,
willingness, and ability to buy
a good or service
The higher the price the fewer
consumers with purchase. The lower
the price, the more consumers will
buy.
Substitutes: Competing
products b/c consumers
can choose one over
the other
– Change in price in one
good, causes the demand
of other to change in
same direction
– Price in good A goes up,
the demand for good B
goes up
– Price in good A goes
down, demand for B goes
down.
Complementary:
products that are
used together
– Demand for one
good moves in
opposite direction as
the price for the
other
– Price of Good A goes
up, Demand for
Good B goes down
Amount
by which the quantity
supplied is higher than the quantity
demanded
Price is too high
Consumers are unwilling to pay the
price
Will lead to needing to lower
prices(sales)
Amount
by which quantity demanded
is higher than quantity supplied
Price is too low
Suppliers are unwilling to sell their
goods or services in large enough
numbers to meet demand
Supply
and demand are balanced at
this point
There is neither surplus nor a
shortage
Sole Proprietorships: most common type;
business owned and operated by a single
person
Partnerships: business that 2 or more
people own and operate
Corporation: organized business
recognized under law that has many of the
rights and responsibilities as citizens
– own property, pay taxes, sue or be sued
When
one purchases stock in a
company, that is all they can lose if
the company goes out of business.
An advantage for corporations in
gaining investments from individuals.
Less risk for investors than owning
own business