Mrs. Carl: We have been learning about economics for a few weeks. Now is your chance to tell us everything you know about economics! Tell each other what you know about goods, services, opportunity cost, supply and demand, etc. Talk about how your classroom checkbook and finance lessons have helped you gain more perspective to economic issues. Will you be a saver or spender when you grow up? Why is it important to save for a “rainy day?” This blog post will be graded and if possible, please print it out with your name on it! Happy saving/spending!
So, to start off, there are tons of different ways to run an economy. There are two main systems, capitalism and socialism. Capitalism is based on private ownerships. It is a system of free enterprise. Free enterprise means the government shouldn’t interfere with the economy. The laws of supply and demand make sure that the economy runs smoothly in meeting the needs’ of the people. The powerpoint Concepts of Economics says,”Capitalism is characterized by competition in which there is rivalry in supplying or getting an economic service or good.” This means that there is rivalry/competition in getting a service or good. This is a character or trait of capitalism. It also states that sellers compete against sellers, and buyers compete against other buyers. It is like a economics competition. Buyers look for good deals while the sellers look to make the best deal while making them a good profit.
Socialism is when people think that the government should be in charge of economic planning, distribution of goods, and production. Theories of early socialism started around the late eighteenth century. Factory owners were becoming rich and workers were broke. This led to the idea that workers should get more of the profits of the factory. See, socialism went for more cooperation and were as capitalism favored competition and privately owned property.
Needs and wants are a very important part of the economy. Needs are things that we have to have in order to survive. Wants are services and other goods that we wish for.
Supply and demand also play a giant part. Supply is when how many a certain good or service has for people to buy. Demand is how many people want to buy a service or good. Like when a new iphone comes out. The supply is how many of the iphones there are to buy. The demand is how many people want to buy the new phone. We also learned about importing and exporting goods and services to and from foreign countries.
Economics is an important part of our world. Though I have only scratch the surface of economics, I hope you learned something. If you were patient enough and read the entire way down to the end, thanks!