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GENESEE ACADEMY SOCIAL SCIENCE

NOTES LESSON FOUR

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BY: CHAUNTE JONES

ECONOMICS LESSON 4

 


MARKETS
      WHERE EXCHANGE HAPPENS

 

STOCK EXCHANGE-
       A PIECE OF PAPER THAT GIVE YOU OWNERSHIP OF SOMETHING
ex: Ebay-buy and sell nothing
 
GLOBAL COMMUNITY

 

2 TYPES OF MARKETS
                 FREE - NO RESTRICTIONS - WORKS
   COMMAND - BARRIERS AND RESTRICTIONS- NEVER WORKS
ex of restrictions:
       taxes, minimum wage,wage price control

 

* FREE MARKETS- SETS WAGES AND PRICES

 

 WAGES OF PRICES ARE PRECIEVED VALUES

 


                   
PRICES
1. PROVIDES INFO
2. ACTS AS A RATIONING  MECHANISM
3. ARE INCENTIVES

 

*BUYERS COMPETE AGAINST BUYERS
*SELLERS COMPETE AGAINST SELLERS
 
VALUE- WHAT ITS WORTH

 
 
 
 
"We hold these truths to be self-evident, that all men are created equal,..." Declaration of Independence, 1776