Global Markets

Opportunity Cost's

When economists talk about opportunity costs they are talking about the sacrifice a person is making when making a decision. This can be illustrated when looking at the stock market. For every stock a person buys, the amount of money they have to spend on other stocks decreases.

Opportunity costs are the things a person gives up when making a decision. This opportunity cost can be, but is not limited to monetary values. For every decision a person makes, there is alternative decision (opportunity costs). For example, if a high school has $10,000 to spend however they choose, and they decide to spend it on textbooks for AP classes, the opportunity cost would be not being able to spend the money on other items for the school. Another example would be a person decorating their bedroom. Let's say there is a lovely view of the lake through the window and the decorator decides to put a chair next to the window, the opportunity cost would be not being able to put the bed next to the window and see the view when they're going to sleep. An example of oppportunity cost in my life would be getting a job. If I get a job, I will have to work the majority of the work week adn weekend. My opportunity cost would be not being able to stay in the Dance Company and not being able to join the Outdoor Track team.

Traditional economies: are in which people do their own thing that they survive on what they make. For example if you plant vegetables and you eat that. Traditional economy is the same as your past for example your grandparents. You still could find traditional economies in South America, Asia, and Africa. Basically traditional economies are passed down by tradition and they chose to live that way.
Centrally Planned (Command) Economy: The centrally planned economy is basically run by the government and the government decides everything on what to do. No other person could make a decision to run any kind of business. The government decides what goods they could sell and produce. And the government sell the goods and the services.
Market Economy: The U.S. runs on the market economy. A market economic system is one in which a nation's economic decisions are the result of individual decisions by buyers and sellers in the marketplace. An economy that operates by voluntary exchange in a free market and is not planned or controlled by a central authority; a capitalistic economy. Market economy depends on you because you could open a business and if the consumers look for your product you have a chance to succeed if the consumer doesn’t like your product you will run out of business.
Mixed Economy: A mixed economy is when a country has communism and socialism. No countries have only one because every country has a mixed economy, with some free enterprise and some government ownership.
Communism: is when the government operates and controls all of the nations productions. Communism is a system of government in which the state plans and controls the economy and a single, often authoritarian party holds power, claiming to make progress toward a higher social order in which all goods are equally shared by the people.
Socialism: is when the government owns everything from banks to airplane companies. And everyone contributes to the economy. If the government owns and operates many of the nation's major industries-such as banks, airlines, railroads, and power plants-but allows individuals to own other businesses, including stores, farms, and factories, that nation's economic system is called socialism.

Initial Investment Plan For The Stock Market Game

The first thing that I would to find information about the stock market is search around for big compaines that dont change that much and for little companies that have the ability of going high up in the market. Such as Yahoo and Google and little companies such as banks and other small business