Econcon
2.1.3 Practice: Playing Your Part
Practice Assignment
U.S. and Global Economics (S2827583)
Eva Lugo
Points possible: 30
Answer the following questions based on what you have learned about the roles of consumers and producers.
1. Explain why the role of a consumer is important in an economic system, and give two examples of someone playing the role of consumer. (10 points)
Explanation:
Consumers control what they want to buy. Producers make products and services based on what they think consumers need and want, and what consumers have already shown that they're willing to buy. Because of this, consumers have a great influence over the actions of producers.
Example:
Consumers have all different tastes of music; therefore producers produce CD’s of various genres. This way, consumers influence the production of CD’s.
Example:
Some girls (consumers) prefer wearing sandals than wearing tennis shoes, therefore, a shoe company will produce sandals and tennis shoes so both types of costumers will buy their products.
2. Describe the role played by the producers in an economic system, and give two examples of someone being a producer. (10 points)
Description:
Producers are the ones who determine what's available. Sometimes, there's a limited quantity offered, producers also set the price-
Example:
The latest version of the iPhone was limited, because the PRODUCERS decided to make a certain quantity of them, therefore since there’s a limited amount of them they can put the price they want on the iPhone.
Example:
The cookie company made 20,000 chocolate chip cookies, consumers liked them and there’s only 2,000 the cookie company decides not to make more of these cookies and they raise the price by one dollar because since people liked them, they will buy them for a higher price.
3. Explain how the government is both a consumer and a producer and give one example of the government playing each role. (10 points)
Government is a consumer because:
The
Practice Assignment
U.S. and Global Economics (S2827583)
Eva Lugo
Points possible: 30
Answer the following questions based on what you have learned about the roles of consumers and producers.
1. Explain why the role of a consumer is important in an economic system, and give two examples of someone playing the role of consumer. (10 points)
Explanation:
Consumers control what they want to buy. Producers make products and services based on what they think consumers need and want, and what consumers have already shown that they're willing to buy. Because of this, consumers have a great influence over the actions of producers.
Example:
Consumers have all different tastes of music; therefore producers produce CD’s of various genres. This way, consumers influence the production of CD’s.
Example:
Some girls (consumers) prefer wearing sandals than wearing tennis shoes, therefore, a shoe company will produce sandals and tennis shoes so both types of costumers will buy their products.
2. Describe the role played by the producers in an economic system, and give two examples of someone being a producer. (10 points)
Description:
Producers are the ones who determine what's available. Sometimes, there's a limited quantity offered, producers also set the price-
Example:
The latest version of the iPhone was limited, because the PRODUCERS decided to make a certain quantity of them, therefore since there’s a limited amount of them they can put the price they want on the iPhone.
Example:
The cookie company made 20,000 chocolate chip cookies, consumers liked them and there’s only 2,000 the cookie company decides not to make more of these cookies and they raise the price by one dollar because since people liked them, they will buy them for a higher price.
3. Explain how the government is both a consumer and a producer and give one example of the government playing each role. (10 points)
Government is a consumer because:
The