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Supply and demand!!!!! For example: If you have a lot of something, let's say...Gameboys...and the demand for the Gameboys are low, (this means no one really wants them) then the price of the Gameboys will go down so that the stores can sell the products. Now let's look at the Nintendo Wiis. The supply is low, the demand is high. Therefore, the price will go up. Supply and Demand makes our economy go round.
Very true, and if we look at money as our basis for the economy, once boiled down to it's simplest form, that $20 bill in your wallet represents nothing more than the ability to do work. There can only be as much money in the economy as there are goods and/or services to back up said money. If there is not enough goods or services to back up the money, then the value of the money goes down. Remember those candy bars used to be just a nickel? Which means a five dollar bill today might buy me two gallons of gasoline today, but in three years it very well may just get me a single gallon. One of two things happened, we either printed more money, making my five dollars less valuable, or we printed no new money, and the demand for gasoline simply went up, causing the price to rise.
Remember, at the end of the day a dollar bill is just a piece of paper with pretty pictures on it. The only value it has is that which we in our own minds give it.
So basically, it's the supply and demand.
!!!!!!! follow me on twitter @barackobama i know lots of stuff
Wiki User
∙ 9y ago
Wiki User
∙ 14y agoSome people provide other people with money to set up a business. The people who provided the money are called shareholders. The people who took the money are called management. The money is called capital. The managers use the capital to hire workers, rent space, and purchase machinery and office furniture. Then they start selling their product. Their product might be cars, Hamburgers, computer programing, Plumbing repair services, or any number of things. If there is money left over after the bills are paid, that is called profits. The company pays income tax. Then the company takes what is left and declares a dividend and gives the profits back to the shareholders.
Wiki User
∙ 13y agoIn a market system the interaction of supply and demand for each good determines what and how much to produce.
Wiki User
∙ 10y agoNo
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How does the market economy work?
An increase in trade and aided the growth of market economy
How does market economy work?
An increase in trade and aided the growth of market economy
Use economy in a sentence?
Finding work in the present economy can be a difficult task.
How is the government involved in a planned economy?
In a centrally planned economy, the government is completely in charge of the economy. There is no reward for individual hard work. The government tells everyone what to do.
Why is the market economy called a participatory economy?
Because it's based on the economic model where participation is necessary for it to work. IE: If you don't participate, there is no economy.
What is Pennsylvania's economy?
Pennsylvania has a really good economy. There is a lot of work.
How does the market economy work?
An increase in trade and aided the growth of market economy
Use economy in a sentence?
Finding work in the present economy can be a difficult task.
How does market economy work?
An increase in trade and aided the growth of market economy
How did the Middle Ages economy work?
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How is the government involved in a planned economy?
In a centrally planned economy, the government is completely in charge of the economy. There is no reward for individual hard work. The government tells everyone what to do.
Is Israel a market economey?
Israel does not have the best economy and it does need a little work... but what economy doesn't
Chinas economy is known as a what economy?
China's economy is known as a command system, or a socialist economy. This means that the wealth of everyone in China's work force is evenly distributed amongst everyone in the country. This poses a problem for people's incentive to work which is the main flaw in this type of economy
The effects of bad work ethic on the south African economy?
Erm, a bad economy?
How was the sugar economy of the West Indies different from the tobacco economy of the Chesapeake?
The sugar economy was very expensive and intricate work but the tobacco economy was cheap and fairly simple.
Why is the market economy called a participatory economy?
Because it's based on the economic model where participation is necessary for it to work. IE: If you don't participate, there is no economy.
What is the importance of world economy in police work?
security
