Question

How did you participate in economics during the past week? Using your outline, write a four- to five-sentence paragraph in responseee

Answer 1

Sample response: This week I participated in the economy through buying and selling. At the beginning of the week, I was trying to decide between a book and some new music, and I chose the book. I also worked at a coffee shop. These activities are part of economics because I was a consumer when I decided, based on opportunity cost, to buy something. When I worked, I was a producer. As both a producer and a consumer, I involved myself in the economy

Answer 2

You participated through your purchases. In a capitalist economy, you have money that was earned some way, in this case it was mostly given to you by your parents who earned it while working. When you buy breakfast in a bakery, you give money to others who earn it. After they pay their taxes for what they sold, they use the money to either invest in the bakery or to take themselves. They also give wages to other people so they earn money as well and then they can spend it somewhere else. It is important in a capitalist economy for the money to circulate between people all the time.