What is the economy all about?
Storyboard Text
- Hey dad, what is the economy all about? We just started learning about it and I want to know everything before we even start.
- I thought you'd never ask son! I was the top of my intro to business class, so I know a few things
- Oh that's interesting, those shoes are pretty cool too dad.
- There are also services which are actions done or provided by someone for someone else. With wants and needs, you see these pair of shoes? They are cool right? But do you need them, no, that would be a want. Do you see all the food and drinks in the aisles? Those are needs because you need those things to survive.
- Lets start with Wants and Needs. A want is something that is not necessarily needed for life but is something that you could use to benefit you, and a need is something that is necessary for life, you can not live without it.
- Finally, let's talk about command and traditional economies. a command economy is an economy mainly powered by government. The government controls valuable resources while people regulate the less valuable ones. The command system is very rigid and slow to change because it is powered by government, so it wouldn't do so well in an economic crisis. Traditional economy is an economy that is based off goods, works, and services. There is little division in labor and there are few resources to shar among communities. It is also highly sustainable.
- Next, let's talk about mixed economy. Also known as the dual systems, the mixed economy is the norm economy globally. Has the best features from both market and command economies, but they face the challenge of finding the balance between free market and government control
- Moving on, lets talk about types of economies. Starting off with Market economy. Market economy is an economy completely free of government control. The population comes from participation from the economy. Market economies usually form mega corporations, controlling massive amounts of the economy.
- Intro
- Supply and demand doesn't apply to some companies because some companies produce really flashy products. This can be designer clothing with name brand print, luxury cars, and luxury watches and jewelry. People are willing to pay the high prices for a little more popularity because they want these flashy products, no matter the price, so supply and demand doesn't apply to those kinds of businesses.
- Next let's talk about supply and demand. Supply is the amount that the company produces and demand is the amount people want to buy. Businesses really have to pay attention when it comes to supply and demand because when people are wanting to buy certain products for certain prices, you have to adjust your supplies and continue to supply more and more so that the consumers are happy. Most companies produce more of the more expensive products and less of the cheap products, but that usually doesn't work. This is because people don't want to spend the amounts of money for the expensive products, but they want all the cheap products so the companies have to adjust to that,
- Wants and Needs
- Next in the cycle is the recession. Right now, business is not doing too good. When the economy falls, employment levels decline and output reduces
- A business cycle is the cycle a business goes through at all times. It starts with the peak. During a peak, the gross domestic product is near its maximum output, employment levels are high, income and pricing is only going up, and risk of inflation is good.
- Third in the cycle is trough/depression. This is when companies are at all time lows. Employment levels have decreased to the max, and output has reduced even more. Businesses are not doing good right now.
- Types of economic systems
- Thanks dad! Now I'm going to be at the top of my class because I know everything about business that I should know! Hopefully I will learn even more in my business class!
- So you see son, that is what economy is all about. I guess you can say I know some things about business. Thanks Mr. Snyder!
- Supply and Demand
- Business Cycles
- Last in the cycle is Expansion/recovery. The business is picking up again. Economy grows, employment and output also go up. Everything is growing and things are looking promising for another peak.
- Outro/The end
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