by Claire Y. and Austin A.
any good owned by individual or business, as opposed to being owned by the government
buyers, sellers, workers, and investors
- Buyer - People who want doughnuts
- Seller - Krispy Kreme Doughnut Corporation
- Worker - Factory workers, distributors, store employees
- Investor - Shareholders who buy stock investing in the corporation
exchanging what you value less for what you value more
- Exchanging 100 pennies for 1 dollar bill
- Exchanging money for weekly groceries
- Exchanging money for part of a company (loans for stocks)
competing in the economy for better products, prices, wages, and skillsets
- Working at Subway instead of McDonald's for higher wages
- Selling generic brand products at a lower cost than name brand products
- Clothing stores compete for better fashion/fit at lowest price (Ross, Marshalls)
reasons why people do (or do not) work
- Teenagers work part-time for pocket money or other wants
- Parents work to provide food, shelter, and other necessities for their families
- People who inherit money or property from past generations may have little incentive to work for their wants/needs
Relation to the Real World
Choice - People make the decision to eat there because of taste, convenience, etc.
Voluntary Exchange - McDonald's pays money for ingredients, customers pay money for cheap meals.
Competition - McDonald's competes with other fast food restaurants by offering products exclusive to their company (Happy Meals, dollar menu). Some restaurants have playgrounds to appeal to children.
Economic Incentive - Everything is for profit.