1. What is a barter system?
Barter systems are those that feature direct exchange of goods without the use of money or another medium of exchange. They allow individuals to trade goods they don’t need or want in exchange for goods they want/need. It is hard for small isolated communities to barter.
2. What is the principle of supply and demand?
The principle of supply and demand is prices for goods and services are determined by the supply of a good/service and the demand for the good/service. When supply is high and demand is low prices lower. When supply is low and demand is high then prices go up.
3. What are tariffs? How do they impact the economy?
Tariffs are taxes that are levied on imports and/or exports. They can affect the amount of
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How do your financial choices impact the economy? Trace the impact of your financial decisions. People that have jobs produce goods for the economy and then receive paychecks. They take their paychecks and then buy goods and the money is put back in the economy.
2. What are some of the advantages and disadvantages to a market economy? Some advantages of a market economy are competition, economic freedom, and limited government influence. These things increase choice and provide more freedom to individuals and businesses. Some disadvantages are they tend to create extreme differences between the richest and poorest people, they use up natural resources without consideration of the future, and individuals can be exploited.
3. How do global factors influence the economy in your country? Global factors like trade allows countries to goods and services that they can’t get in their own country and export any excess of goods and services.
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 disadvantages are they are slower to implement new technology and consumers may have less access to goods. Some advantages are there is rarely any overproduction and they are there to satisfy the