In economics, what is the study of how people make decisions about what to produce, how to produce it, and how to distribute it?
Economics is the study of how people and societies decide to use resources like time, money, and materials. It helps us understand how people and groups make decisions, like the cost of goods, how goods are produced, and how goods and services are distributed. Economics is used to explain and predict the behavior of people, businesses, and governments.
Economics: The Study of How We Make Decisions
Gross Domestic Product (GDP): The total value of all goods and services produced in a country in a given year. Inflation: A sustained increase in the general price level of goods and services in an economy over a period of time. Supply and Demand: The relationship between the quantity of a good that producers wish to sell at a certain price and the quantity of that good that consumers wish to buy.
What do you think is the most important economic lesson for 6th graders to learn?
- The importance of saving money
- How to invest in stocks
- The basics of supply and demand
- The concept of free markets
Economics is the study of how people make choices about how to use limited resources. The most popular economic model is called supply and demand. Economists use mathematical models to analyze economic data and make predictions about the future.
Did you know?
What are some of the economic challenges facing our country today?
What are the differences between a free market economy and a command economy?
How does supply and demand affect the price of goods and services in a market economy?
What do you think are the advantages and disadvantages of the economic system in our country?
Based on what you learned about economics today, how might it affect the decisions you make in the future?