PRIVATE PROPERTYCHOICES
• Sell• Items• Impossible• Owning• Buy
CORRECT
• Owning• Buy• Sell• Impossible• Items
MARKETS & PRICESCHOICES• Supply• Exchange• Demand• Open
Market• Prices
CORRECT
• Exchange• Open
Market• Supply • Demand• Prices
INCENTIVES/SELF-INTEREST
CHOICES• Consumers• Needs• Wants• Profit• Self-Interest
CORRECT• Self-interest• Profit• Consumers• Wants• Needs
FREEDOM OF CHOICECHOICES
• Services• Choose• Produce• Consume• Goods
CORRECT
• Choose• Produce• Consume• Goods• Services
COMPETITIONCHOICES
• Profits• New Ideas• Compete• Attractive• Prices
CORRECT
• Compete• Profits• Attractive• New ideas• Prices
LIMITED GOVERNMENT ROLE
CHOICES
• Government
• What• How much• Fair• Compete
CORRECT
• Government• What• How much• Fair• Compete
THE M
ARKET ECONOMY
PRIC
ES UP,
PRIC
ES DOW
N ACTI
VITY
Find out how different
situations can affect how much
stuff costs!
Producer says…
I manufacture the world’s best cupcakes! I just
heard a storm wiped out the sugar cane crop. Now there’s going to be less
sugar to meet everyone’s demands!
Will the price of cupcakes go UP or DOWN?
The price of sugar will go up, so my cupcakes will cost more to make. I’ll
have to raise the price of cupcakes.
Producer says…
I manufacture radios. I just installed a new high-
tech machine that lets me make twice as many radios for half the cost!
Will the price of radios go UP or DOWN?
It won’t cost me as much to make the radios, so I’ll be able to sell them at a lower price. That means
more people will buy them (hopefully)!
Producer says…
I own an oil refinery. Summer is coming, and people are going to be driving everywhere!
They’re going to need LOTS of gasoline. It’s
going to be hard to keep up!
Will the price of gasoline go UP or DOWN?
I’ll have to raise the price of gasoline to keep up
with the increased demand, especially if I
can’t maintain the same supply.
Producer says…
I sell landscape rocks. I just ordered TONS, but a new gardening show has got everyone decorating
with gnomes instead. What am I going to do with all these rocks??
Will the price of rocks go UP or DOWN?
I’ve got to get rid of all these rocks somehow. I’ll
put them on sale and hope people will buy
them at the lower prices!
Producer says…
I’ll have to charge a lot for these chairs, because
the new technology is expensive to make. But I
don’t have any competition, so I won’t worry about the high
prices.
Will the price of self-folding chairs be HIGH or LOW?
I just invented the world’s first self-folding chair! It folds itself up and puts
itself away. Nobody else makes anything like it!
Producer says…
Self-folding chairs are so popular, I decided to make some too. I can
produce 9,000 chairs a day and distribute them to all the major stores!
Mass-producing these chairs makes them
cheaper to manufacture. I can charge a lower price. My competition will have to lower her price too, or she’ll go out of business!
Will the price of self-folding chairs go UP or DOWN?
A. REVIEW
• 5• 3• 1• 7• 6• 4• 2
B. MOTIVATED
• Thumbs down• Thumbs up• Thumbs down• Thumbs up• Thumbs down
C. A CIRCULAR FLOW
D. WHAT’S THE OPPORTUNITY COST
1.The money she would have earned.2.The 12 cent interest from the
bank.3.The more certain money from
casual dresses.4.The possibility of making an extra
million dollars.
E. THREE KINDS OF ECONOMICS
Market economy
Command economy
Traditional economy
Private property
Incentives
What is produced
Competition
E. THREE KINDS OF ECONOMICS
Market economy
Command economy
Traditional economy
Private property
H F J
Incentives K D B
What is produced
G A I
Competition
E L C
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