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- Chapter 3: The Many Uses of Credit
- How An Economy Grows and Why it Crashes
- BY: AUSTIN STARNES 5th period
- I created a net using natural resources and now I can catch two fish per day. This is known capital.
- Chapter 1: An Idea is Born
- Wow! You will have so much more productivity during the day. We might have to come to a trade agreement because we are only catching one fish per day.
- Is that called under-consumption? Eating less than the supply you have?
- Chapter 5: Prosperity Loves Company
- Chapter 2: Sharing the Wealth
- YES!
- I am catching 2 fish per day. I am eating on of them and saving the other one for later.
- Deal! You will receive fish as credit for letting me borrow a net. Thank you for taking a risk and I will make you proud
- I will loan you one of my fishing nets if you repay with fish as credit.
- Chapter 4: Economic Expansion
- Let's all come together and make a fish trap. Our production will be increased exponentially.
- If we all team up this would be known as a joint venture. In this case it would be three parties seeking a profit (fish).
- I specialize in building boats. I charge 9 fish per boat so I make profit. Each boat takes me about 4 days to build.
- So your basically providing us with a service sector? Something that is important to our daily need. This will assist with fishing and also transportation
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