The Economy
Activity
Using the resources provided on these web pages, complete the economics and civics booklet below.
Using the resources provided on these web pages, complete the economics and civics booklet below.
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Supply and Demand
Think...
Definitions:
Supply: The total amount of a good or service available for purchase.
Demand: The willingness and ability of the people to purchase particular amounts of goods or services.
These two factors will determine the price of a good or service.
The price of an item will go down if the supply increases or if the demand for the item decreases.
The price of an item will go up if the supply decreases or if the demand for the item increases.
- How much is a superstar in the NBA paid compared to an average basketball player?
- Do you think you'd pay more for a 1962 Corvette or a 2004 Corvette (assuming that both are in good condition)?
- Which costs more, diamonds or gravel?
Definitions:
Supply: The total amount of a good or service available for purchase.
Demand: The willingness and ability of the people to purchase particular amounts of goods or services.
These two factors will determine the price of a good or service.
The price of an item will go down if the supply increases or if the demand for the item decreases.
The price of an item will go up if the supply decreases or if the demand for the item increases.
Krispy Kremes Case Study!
Money - How? Why?
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The Reserve Bank
The Reserve Bank has many different roles. Read through this fact sheet to understand some of them. |
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Inflation
Inflation is a rise in prices relative to money available. In other words, you can get less for your money than you used to be able to get.
Here's an example: You buy a candy bar for 50 cents. A year later, you go to buy the same candy bar and it's 55 cents. You still have only 50 cents, but the price of the candy bar has gone up. We can say that inflation is at work. The price of that bar has been inflated. People usually refer to inflation when they talk about the prices of large-ticket items, like cars and houses and stocks. But inflation also affects things like groceries and house supplies. It can also affect things like house payments and rent. When inflation rises but people's paychecks don't, this means that people have spend more of the money to buy the same things that they used to be able to buy for less. http://www.socialstudiesforkids.com/articles/economics/inflation1.htm |
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