Basic Economics

Basic Economics

Created by: Mark Dang

Lucas Zhang

What is an Economy?

• An Economy is the economic system of a country• Includes: All businesses, Companies, Stock Exchanges.• An economy fosters the exchange of goods and services.• For Example: Buying A Car or selling a house

©2011 Creative Curriculum for Children [CCC]

Supply & Demand

• Supply- The amount of services readily available to be sold/exchanged

• Demand- The willingness to purchase an item or commodity. • Example: Car Dealer wants to sell 15 cars. (Supply). The city

wants to buy 10 cars. (Demand)• The relationship between the Supply & Demand determines

the price of products.• High Supply + Low Demand= Low Prices• Low Supply + High Demand= High Prices

©2011 Creative Curriculum for Children [CCC]

Bull/Bear Market

• Bull Market- a term used to describe a positive and prosperous economy related to Stock Trading

• Bear Market- a term used to describe a negative and financially unstable economy related to Stock Trading

©2011 Creative Curriculum for Children [CCC]

Investing Terms

• Stock- a part of a company • Stock Market- where a collection of companies trade stock

(buy & sell)• Stock Exchange- Where traders can buy and sell stock• Buy- Pay for the ownership of X number of Stock• Sell- to liquidate (sell) ones stock for the current stock price

©2011 Creative Curriculum for Children [CCC]

Profit from Stock• Stocks are valued at a price• To make a profit, the stock must be sold at a higher price then

when purchased• For Example

– Stock X is valued at $100– On Monday, you buy 10 Stocks of Company X– The following Tuesday Stock X goes up to $110 per share– At the end of Tuesday, you sell 5 Shares of Stock X

• How Much Money Have You Made?

©2011 Creative Curriculum for Children [CCC]

Virtual Stock Programs

• Investing Stock is risky but profitable• These Programs will provide you with an authentic investing

experience without the risk of losing real money• You will be given virtual money and tasked with investing the

money.• All Stock Prices are real and based off of their real world

counter parts• All Investing Takes place in Real Time • Links:

– http://www.marketwatch.com/game/– http://www.howthemarketworks.com/trading/– http://www.wallstreetsurvivor.com/

©2011 Creative Curriculum for Children [CCC]