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The Economy

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					The U.S. Economy
EQ: How does a market economy
      protect consumers?

(Turn in Green Book to page 248)
     Four Types of Economies
 1. _____________ : all economic decisions are
  made by the government.
 2. _____________ : based on the economic
  decisions of the past.
 3. _____________ : some economic decisions
  are made by government and some by
  individuals.
 4. _____________ : all economic decisions are
  made by individual producers & consumers
             Free Enterprise
 AKA--    ________________

       Free Enterprise because each
 Called
 person is free to _______________.
     Key Components of Free
  Enterprise & a Market Economy
       each and give 1 example why it is
 Define
 so important:
     Private Property
     Voluntary Exchange
     Full Employment
     Productivity/Efficiency
     Division of Labor/Specialization
     Equity/Securities
 Test   Practice page 253, #1-3
Circular Flow Model of Our
         Economy
     Circular Flow Dynamics
 How  does the Circular Flow illustrate
  Economic Interdependence?
 What takes place in the Factor Market?
 What takes place in the Product Market?
 Test Practice page 257, #1,2,3
   Economic Interdependence
 Usingthe Circular Flow Model, create a
 scenario that could actually happen in
 real-world and specifically show how it
 would affect each sector of our economy.
          Law of Demand
 When  _________ go up, __________
  goes down.
 When _________ go down, _________
  goes up.
 Demand is the amount of a good/service
  consumers are wanting or needing to buy.
            Law of Supply
 When  _________ go up, __________
  goes up.
 When _________ go down, _________
  goes down.
 Supply is the amount of a good/service
  producers are willing to produce.
        Complimentary Goods
 Productsthat go together.
 Name a complimentary good for each
     Mayonnaise
     Pepsi
     Paper Plates
     Flatscreen Plasma TV
            Substitute Goods
 Productsthat are basically the same.
 Name a substitute good for each
     Mayonnaise
     Pepsi
     Paper Plates
     Flatscreen Plasma TV
  Complimentary vs. Substitute
 Take  2 complimentary goods. What
  happens to demand for one when price for
  the other goes up?
 Take 2 substitute goods. What happens
  to demand for one when price for other
  goes down?
           What Affects Price
 Inflation:____________________
 Deflation: ______________________
 List everything you can that would
  influence the price of a new automobile.

				
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posted:11/18/2011
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