Economy∗ In your book write the word economy.Using a sentence try and define what you think this word means.
Economy∗ An economy consists of the economic system of a country or other area.∗ It is made up by the labour, capital and land resources and includes the manufacturing, production, trade, distribution and consumption of goods and services.
Key Terms∗ Consumer spending – the total spent by shoppers throughout the country∗ GDP (Gross Domestic Product) - market value of all officially recognized final goods and services produced within a country in a given period of time : Here∗ Exports – goods produced in one country and sold overseas∗ Imports – goods purchased from another country∗ Recession – two consecutive quarters of negative economic growth as measured by a countrys gross domestic product (GDP)
Create a flow chart to show what will happen when: ∗ The economy is doing well. ∗ The economy is doing poorly. ∗ Refer to the following factors: ∗ Employment * Small businesses starting ∗ Housing * International Holidays ∗ Cars * Domestic Holidays ∗ Groceries * Luxury items
Market ForcesAn economy is shaped primarily throughMarket Forces.Write the following statement.For each of the market forces, in your ownwords describe how each will force a change.∗The forces that come from: 1. The amount of a product available What will happen if there is more or less available? 2. The customers who will buy the product What will happen if there are more or less customers willing to buy the product?