Economics (ppt)



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E1 Economic Understandings PPT

Economic Understandings

Hi! My name is Mrs. Econ and today I am going to teach you about economics.

  • Hi! My name is Mrs. Econ and today I am going to teach you about economics.
  • Economics is the study of the making, buying, and selling of goods or services.

Barter-Trade

  • I have 5 rabbits to trade. Want to trade with me?

What is voluntary exchange?

  • People will trade if they both get something from it.
  • The lady trades a jug of milk and 3 eggs for 5 rabbits.
  • She needs the rabbits to make rabbit stew.
  • She’ll use the rabbits’ skin to make a fur cap.
  • The man’s family needs milk and eggs.
  • Yes. I will trade my milk and eggs for your rabbits.

Let’s review voluntary exchange.

  • Voluntary exchange helps both buyers and sellers.
  • Voluntary exchange was used in the system of colonial trade. (barter)
  • The colonists swapped goods that they had for things they needed.
  • I’ll make your farming tools for 4 crates of apples.
  • I’ll give you 4 crates of apples for farming tools.
  • Both parties must benefit from the trade.

Trade was very important after the Revolutionary War ended.

  • Under the Articles of Confederation, Congress had no power to make laws about trade.
  • This turned out to be a big problem among the thirteen states.

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