Economics: Critical Thinking Questions
1. What is a barter system?
A barter system is a trade of goods or services for other goods or services. No money is involved. This allowed people to get rid of what they don’t need so they can obtain what they do need.
2. What is the principle of supply and demand?
The principle of supply and demand is that the price of goods and services will depend on the supply and demand. If there’s a high demand for a certain good but a low supply, the price of the goods will rise.
3. What are tariffs? How do they impact the economy?
Tariffs are taxes set on our imports and exports. They impact the economy because they can either encourage trade between countries or discourage trade between countries.
4. What are the characteristics of a socialist …show more content…
economy? What are the pros and cons of this type of economy?
The characteristics of a socialist economy are government control over businesses and goods are produced for use instead of profit. One pro of this type of economy is that goods and services are only produced to be used which can help to avoid surpluses. One con this type of economy is that people fear they won’t be able to obtain the goods they need.
5. What is capitalism?
Capitalism is a form of market economy.
The main goal of capitalism is to produce goods and services to make a profit. In order to produce goods and services, they need three things: capital (tools used to make things), labour, and resources.
Critical Thinking Questions
1. How do your financial choices impact the economy? Trace the impact of your financial decisions.
Our financial choices impact the economy like a ripple. If a business gets shut down and everyone loses their job, then they can’t take taxes from their paycheck because it doesn’t exist anymore. And that can keep going on and on. If one thing happens it can cause a multitude of other things to happen. Every little thing we do affect the economy.
2. What are some of the advantages and disadvantages to a market economy?
Some of the advantages of a market economy is competition. This allows consumers to have multiple options when choosing a good or service. Another advantage is private ownership. People own their companies instead of the government. Actually, there is only a small amount of government involvement in a market economy. One disadvantage of a market economy is that everything we do affect the economy. Businesses can set their own prices which plays into competition. If they set their prices higher than another business, they could lose money because they are losing …show more content…
business.
3. How do global factors influence the economy in your country?
Global factors that influence the economy in my country include global trade and tariffs. Tariffs, the taxes we set on our imports and exports, can encourage trade with a certain country or discourage trade with a certain country. If we set tariffs too high then countries might not want to trade with us. If we set them low, then other countries might be willing to trade with us more than other countries.
4. What are some of the ways in which the government is involved in the economy? What are the advantages and disadvantages of governmental involvement?
Some ways in which the government is involved in the economy are it controls our money or currency.
The government controls the making of money and the circulation and distribution of money. The government also controls the taxes put on our goods. Some advantages of these taxes are that the government will get more money the more or higher taxes we have. Better government funding can inturn boost our economy. Some of the disadvantages of this is if our taxes are too low the government won’t have that funding and our economy can suffer from that. Another disadvantage of government involvement is the government sets regulations for businesses and guidelines businesses must follow. This can be a burden for some people.
5. Why are healthy individual finances important to the economy in North America?
Healthy individual finances are important to the economy in North America because we all play an important role in our economy and we all contribute to our economy. Most of us have jobs which is a part of the economy. MOst of us but things which is part of the economy. Most of us live in houses or apartments which is part of the economy. It’s very crucial that we make smart decisions with everything because everything we do affects the
economy.
A barter system is a trade of goods or services for other goods or services. No money is involved. This allowed people to get rid of what they don’t need so they can obtain what they do need.
2. What is the principle of supply and demand?
The principle of supply and demand is that the price of goods and services will depend on the supply and demand. If there’s a high demand for a certain good but a low supply, the price of the goods will rise.
3. What are tariffs? How do they impact the economy?
Tariffs are taxes set on our imports and exports. They impact the economy because they can either encourage trade between countries or discourage trade between countries.
4. What are the characteristics of a socialist …show more content…
economy? What are the pros and cons of this type of economy?
The characteristics of a socialist economy are government control over businesses and goods are produced for use instead of profit. One pro of this type of economy is that goods and services are only produced to be used which can help to avoid surpluses. One con this type of economy is that people fear they won’t be able to obtain the goods they need.
5. What is capitalism?
Capitalism is a form of market economy.
The main goal of capitalism is to produce goods and services to make a profit. In order to produce goods and services, they need three things: capital (tools used to make things), labour, and resources.
Critical Thinking Questions
1. How do your financial choices impact the economy? Trace the impact of your financial decisions.
Our financial choices impact the economy like a ripple. If a business gets shut down and everyone loses their job, then they can’t take taxes from their paycheck because it doesn’t exist anymore. And that can keep going on and on. If one thing happens it can cause a multitude of other things to happen. Every little thing we do affect the economy.
2. What are some of the advantages and disadvantages to a market economy?
Some of the advantages of a market economy is competition. This allows consumers to have multiple options when choosing a good or service. Another advantage is private ownership. People own their companies instead of the government. Actually, there is only a small amount of government involvement in a market economy. One disadvantage of a market economy is that everything we do affect the economy. Businesses can set their own prices which plays into competition. If they set their prices higher than another business, they could lose money because they are losing …show more content…
business.
3. How do global factors influence the economy in your country?
Global factors that influence the economy in my country include global trade and tariffs. Tariffs, the taxes we set on our imports and exports, can encourage trade with a certain country or discourage trade with a certain country. If we set tariffs too high then countries might not want to trade with us. If we set them low, then other countries might be willing to trade with us more than other countries.
4. What are some of the ways in which the government is involved in the economy? What are the advantages and disadvantages of governmental involvement?
Some ways in which the government is involved in the economy are it controls our money or currency.
The government controls the making of money and the circulation and distribution of money. The government also controls the taxes put on our goods. Some advantages of these taxes are that the government will get more money the more or higher taxes we have. Better government funding can inturn boost our economy. Some of the disadvantages of this is if our taxes are too low the government won’t have that funding and our economy can suffer from that. Another disadvantage of government involvement is the government sets regulations for businesses and guidelines businesses must follow. This can be a burden for some people.
5. Why are healthy individual finances important to the economy in North America?
Healthy individual finances are important to the economy in North America because we all play an important role in our economy and we all contribute to our economy. Most of us have jobs which is a part of the economy. MOst of us but things which is part of the economy. Most of us live in houses or apartments which is part of the economy. It’s very crucial that we make smart decisions with everything because everything we do affects the
economy.