1. Introducing the economy

2. Businesses affected by the
economy
∗ Here

3. Economy
∗ In your book write the word economy.
Using a sentence try and define what you think this
word means.

4. Economy
∗ An economy consists of the economic
system of a country or other area.
∗ It is made up by the labour, capital and
land resources and includes the
manufacturing, production, trade,
distribution and consumption of goods
and services.

5. Key Terms
∗ Consumer spending – the total spent by shoppers
throughout the country
∗ GDP (Gross Domestic Product) - market value of all
officially recognized final goods and services produced
within a country in a given period of time : Here
∗ Exports – goods produced in one country and sold
overseas
∗ Imports – goods purchased from another country
∗ Recession – two consecutive quarters of negative economic
growth as measured by a country's gross domestic product
(GDP)

6. Create a flow chart to show what
will happen when:
∗ The economy is doing well.
∗ The economy is doing poorly.
∗ Refer to the following factors:
∗ Employment * Small businesses starting
∗ Housing * International Holidays
∗ Cars * Domestic Holidays
∗ Groceries * Luxury items

7. Market Forces
An economy is shaped primarily through
Market Forces.
Write the following statement.
For each of the market forces, in your own
words describe how each will force a change.
∗The forces that come from:
1. The amount of a product available
What will happen if there is more or less available?
2. The customers who will buy the product
What will happen if there are more or less customers
willing to buy the product?