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ág. 270) telework [teletrabajo] véase telecommuting [trabajo a distancia] temp, temps, temping [trabajo temporal] véase contingent employment [empleo contingente] thrift institution [entidad de ahorros] n. institución fi nanciera que sirve a los ahorradores (pág. 478) tight-money policy [política de dinero escaso] véase... |
es Stock Exchange (BCBASE), 336 C call centers, 282 Canada, 533–534 capital, 8, 9, 553 budget, 436 deepening, 371 fl ight, 558 gains, 330–331, 424 human, 8, 261, 264, 371, 552–553 bull market, 335 market, 322 Bureau of Labor Statistics (BLS), 382–383 capitalism, 49, 70. See also free enterprise system. Burr, Aaron, 297 ... |
344, 351, 362, 369, 374, 376, 383, 389, 394, 397, 404, 411, 422, 426, 429, 434, 440, 447, 456, 465, 468, 475, 482, 494, 504, 511, 512, 518, 530, 538, 545, 556, 560, 567, 570, 588, 593 economic systems, 37–62 command economy, 39, 42–46, 54, 56, 562–564 global, 61–62 market economy, 39, 43, 48–57, 51, 562–567, 569 mixed,... |
insurance banking and, 307 fi nancial, 320, 341 types of, 596–597, 597 Integrated Device Technology, 62 interest, 304–305, 578 calculating, 321, R6 risk and return, 327, 327–329, 338–340, 579, 579 spending multiplier effect and, 455 stability and, 555 U.S. Treasury bonds, 464 Iran, A15, 524 monetary policy and, 495, 495... |
competitive, 174 controls, 501, 563 private company, 238 private property rights, 48–49 private sector, 86, 432, 432, 466 privatization, 61, 563, 564 producer, 5, 39, 130, 150 competition and, 192–195, 207–210 cooperative, 250 free enterprise system and, 78 infl ation and, 400 monopolistic, 198–199 prices and, 176, 176–... |
, 462c concepts chart, 24c, 48c, 106c, 146c, 174c, 198c, 226c, 296c, 324c, 338c, 434c, 454c, 480c, 510c, R13 hierarchy chart, 42c, 138c, 180c, 214c, 266c, 304c, 318c, 352c, 428c, 490c summary chart, 18c, 248c, 274c, 368c, 388c, 532c, 544c, R26, R27 R76 Index Uniform Partnership Act (UPA), 235 trade balance, 530, 530, R... |
0: Excerpts from “iPod Tax Planned for Music Downloads?” from the CNET Web site, March 10, 2006. Copyright © 2006 CNET Networks, Inc. All rights reserved. Reprinted by permission of Reprint Management Services. Chapter 14, page 441: Excerpt from “Internet Sales Tax,” from The New York Times, July 5, 2005. Copyright © 2... |
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read. Below you will find several strategies that involve built-in features of Economics: Choices and Concepts. Careful use of these strategies will help you learn and understand economics more effectively. Preview Chapters Before You Read Each chapter begins with a two-page chapter opener. Study these pages to help y... |
Demand for Goods and Services Let’s look at an example of elastic demand. Suppose that a certain brand of PDAs goes on sale. If the price of that brand goes down 20 percent, and the quantity demanded goes up 30 percent, then demand is elastic. The percentage change in quantity demanded is greater than the percentage c... |
ments of a command economy but North Korea has more. alternatives A. China B. North Korea C. South Korea D. Japan You can eliminate D if you remember that Japan has a market economy. 3 Read each alternative 2. Economic models with the stem. Don’t make your final decision on the correct answer until you have read all of... |
ectricity? A. The graph shows that there were greater A. coal B. natural gas C. nuclear D. petroleum fluctuations in job creation in the later months of 2005 than there were in the early months of 2006. B. More jobs were added to the economy in all of 2005 than in all of 2006. C. The graph shows a steady upward trend i... |
televisions, furniture, computers, and shoes? The goods and services a society chooses to produce depend, in part, on the natural resources it possesses. For example, a country that does not possess oil is unlikely to choose to produce petroleum products. Resources, however, do not completely control what a country pr... |
by words such as led to, brought about, thereby, and as a result. Look for causeeffect chains, where an effect may be the cause of another event and so on. Diagram the causes and effects in a flowchart like this one. CAUSE: war in Iraq CAUSE: unrest in Nigeria CAUSE: continued Mideast turmoil EFFECT/CAUSE: crude oil av... |
something else that is wanted. 14 Chapter 1 Analyzing Choices KEY C ONCEPT S Shanti and Dan did not make their choices randomly. Rather, they carefully looked at the benefits they would gain and the opportunity costs they would incur from their decisions. This practice of examining the costs and the expected benefits o... |
up kitchen and have the ingredients to make 12 loaves of whole wheat bread or 100 bran muffins or some combination of the two. A PPC can help you decide what to make. QUICK REFERENCE An economic model is a simplified representation of economic forces. The production possibilities curve (PPC) is a graph used by economis... |
ws impact of scarcity Use the Graphic Organizer at Interactive Review @ ClassZone.com . Applying Economic Concepts Explain why, in an economy that produces only fish and computers and is working at efficiency, the 500th computer made will cost more in terms of fish than the 450th computer made. 8. Applying Economic Con... |
ch economists observe economic behavior are microeconomics and macroeconomics. Microeconomics is the study of the behavior of individual players in an economy, such as individuals, families, and businesses. Macroeconomics is the study of the behavior of the economy as a whole and involves topics such as inflation, unem... |
ue that affects an individual person, family, or business and explain its effect. 5. Explain the value of statistics and other data to positive economics Ford Motor Company assembly line, 1913 and to normative economics. 6. Using Your Notes In what ways was Adam Smith a microeconomist? In what ways a macroeconomist? Re... |
Evaluating Economic Decisions You plan to open a restaurant that specializes in meals cooked with organic products. You realize that location is very important for this kind of business. You have two options: you can rent an expensive site downtown or you can buy an inexpensive building in a quiet neighborhood. What a... |
from the forces of change. The Kavango people of Namibia in southern Africa, for example, have lived as subsistence farmers for centuries. (Subsistence farmers grow just enough to feed their own families.) Modern telecommunications, however, have bombarded the Kavango with images of the world beyond their homeland. As... |
society without economic classes. Marx, assisted by Engels, laid out these ideas in The Communist Manifesto (1848). Marx discussed his economic ideas more fully in his enormous study Das Kapital, which was published in three volumes between 1867 and 1894. Because of the way that communist economies worked in practice a... |
o own and use private property— houses, for example. 48 Chapter 2 FEATUR E 1 Private Property and Markets For markets to operate efficiently, private property rights need to be well defined and actively enforced by law. If you have ever bought a car, you know that an essential part of the transaction is getting possess... |
f the product market are businesses, which offer their goods or services for sale and use the money they earn from the sales to keep their businesses going. Factor Markets To run a business, firms must, in turn, purchase what they need from the factor market, the market for the factors of production—land, labor, capita... |
OMICALLY Comparing and Contrasting 1. How are market and command economic systems similar? 2. In what ways do these two economic systems differ? 3. Read the paragraphs about North Korea under the heading “Command Economies Today” on page 45. Construct a Venn diagram showing similarities and differences between the econ... |
s have changed, and are always changing, in response to changes in natural, social, and political conditions. In the early 1990s, for example, some Eastern European economies experienced abrupt change when their command systems broke down after the collapse of communism in the Soviet Union. Many of these economies have... |
4,000 2,000 0 B. Graph This graph compares North Korea’s and South Korea’s per capita GDP— each person’s share of everything produced in the economy—from 1994 to 2004. SOUTH KOREA NORTH KOREA 1994 1996 1998 2000 2002 2004 Year Source: United Nations Statistics Division Thinking Economically What does this graph sugges... |
d, labor, capital, entrepreneurship s e c r u o s e R Payments Factor Market Income Go to INTERACTIVE REVIEW for concept review and activities. How do households, businesses, and government interact in the economy? See Figure 3.4 in Section 2 of this chapter. The American Free Enterprise System 69 S E C T I O N 1 Advan... |
ost interest, and it quickly became obvious that the pet rock was last year’s fad. Dahl decided to get out of the pet rock business, guided by the same market forces that had brought him into the business and made him rich. Open Opportunity Because of legal rights built into the free enterprise system, Gary Dahl was fr... |
Bank, 2005 Challenge Use the chart and what you know about the economies of the listed countries to write a short paragraph comparing the ease of entry into the marketplace in three countries of your choice. 77 S E C T I O N 2 How Does Free Enterprise Allocate Resources TA K I N G N O T E S In Section 2, you will prof... |
b er N ove m b er D ece m b er Source: The Conference Board, December 2005 Consumer Confidence Index According to researchers, consumer confidence in the economy tumbled after Hurricane Katrina hit the Gulf Coast in September 2005. Falling gasoline prices and growth in the job market led to a recovery in confidence in... |
oney, you could buy a couple of video games. What will you choose—public wants or private wants? ? Water park Video game APPLICATION Applying Economic Concepts A. Identify another example in which the free rider problem makes public goods or services the best solution. 86 Chapter 3 Managing Externalities KEY C ONCEPT S... |
d States Percent of total economy Source: Organization for Economic Co-operation and Development, 2001 figures FIGURE 3.9 HOUSEHOLD TAX BURDEN 21.6% 9.1% CONNECTING ACROSS THE GLOBE 1. Synthesizing Economic Information How do tax levels relate to the amount of resources devoted to social spending? 2. Drawing Conclusion... |
goods public transfer payments safety net subsidy transfer payments 1 is another name for capitalism. Three features of this type of economy are open opportunity, legal equality, and 2 , or the right to enter into agreements of one’s choice. The 3 is a driving force in a free enterprise system, urging entrepreneurs to... |
Mart affect her spending decisions. Cheryl has been saving to buy the DVD boxed set of the original Star Wars trilogy, one of her favorite series of movies. The set costs $69.95, and Cheryl has the money to buy it this weekend. When Cheryl goes to the Montclair Video Mart, she is disappointed to learn that the Star Wa... |
5 or drops by $5? Once again, find the answers to these questions by running your finger along the curve. As you can see, the market demand curve—just like the individual demand curve—vividly illustrates the inverse relationship between price and quantity demanded. If price goes down, the quantity demanded goes up. And... |
Malik buys two pairs, is this an example of the income effect or the substitution effect? Explain your answer. QUICK REFERENCE Income effect is the change in the amount that consumers will buy because the purchasing power of their income changes. Substitution effect is a change in the amount that consumers will buy be... |
is higher in August because consumers expect the sales and often choose to wait for them. FACTOR 5 Substitute Goods Goods and services that can be used in place of other goods and services to satisfy consumer wants are called substitutes. Because the products are interchangeable, if the price of a substitute drops, pe... |
the term elasticity of demand to describe how responsive consumers are to price changes in the marketplace. Economists describe demand as being either elastic or inelastic. Demand is elastic when a change in price, either up or down, leads to a relatively larger change in the quantity demanded. The more responsive to c... |
er way to determine elasticity is shown on page 122. M AT 16 Calculating the Elasticity of Demand Step 1: Calculate percentage change in quantity demanded. (If the final result is a negative number, treat it as positive.) Original quantity – New quantity Original quantity 100 = Percentage change in quantity demanded Ex... |
the demand for SUVs. Use evidence from these documents to support your answer. Demand 125 CHAPTER 4 Assessment What Is Demand? (pp. 98–105) 1. What two things are necessary for a consumer to have demand for a good or service? 2. What do economists mean when they say that quantity demanded and price have an inverse rel... |
n the price falls, they want to supply less of it. In other words, price and quantity supplied have a direct relationship. This relationship is illustrated in Figure 5.1. QUICK REFERENCE The law of supply states that when prices decrease, quantity supplied decreases, and when prices increase, quantity supplied increase... |
ity Supplied 2.00 1.75 1.50 1.25 1.00 0.75 0.50 350 300 250 200 150 100 50 50 100 150 200 250 300 350 Quantity supplied of tomatoes (in pounds) ANALYZE GRAPHS 1. At which price will all the fruit and vegetable stands want to sell 200 pounds of tomatoes? 2. How is the slope of this supply curve different from the slope ... |
nishing returns, as each new worker causes total output to grow but at a decreasing rate. With eleven workers, total output actually decreases, and Janine experiences negative returns. This may happen as employees become crowded and operations become disorganized. It is rare, however, for a business to hire so many wor... |
rease in marginal revenue. Since the goal of every business is to maximize profit, having a tenth employee runs counter to Janine’s best interests. AP P LI CATION Analyzing and Interpreting Data C. If the price of jeans increased to $22 per pair, how would it affect Janine’s total revenue and profit? QUICK REFERENCE Pr... |
s the firm’s costs increase, it is less willing and able to offer as many automobiles for sale. Any action such as this, which changes the costs of production, will change supply. Change in supply occurs when something prompts producers to offer different amounts for sale at every price. When production costs increase,... |
were ignoring a substantial market—African Americans. To fill this void, Johnson conceived the idea for Black Entertainment Television (BET), the first cable channel owned by and focused on African Americans. To launch his dream, Johnson took out a $15,000 bank loan. He also persuaded a major investor to put up $500,00... |
rame to respond is a day, a week, or a month. Industries that are able to respond quickly to changes in price by either increasing or decreasing production are those that don’t require a lot of capital, skilled labor, or difficult-to-obtain resources. For example, the quantity supplied of dog-walking services can incre... |
es, quantity supplied increases, and when price decreases, quantity supplied decreases. Quantity supplied can be displayed on a chart called a 3 or on a graph called a 4 . 5 is the change in 6 caused by hiring one additional worker. When marginal product begins to decrease, production is in the stage of 7 . Total cost ... |
demanded at various prices. Notice that quantity demanded and quantity supplied are different at every line of the schedule except one. That line represents market equilibrium and shows the equilibrium price of $6. When Karen offers salads at prices above $6, she produces more salads than she can sell and has to throw... |
in Figure 6.4. Notice that this new demand curve (D2) intersects the supply curve at a lower price, around $65. This becomes the new equilibrium price. At this QUICK REFERENCE Disequilibrium occurs when quantity demanded and quantity supplied are not in balance. FIGURES 6.4 AND 6.5 CHANGES IN DEMAND AND EQUILIBRIUM PRI... |
e changes happened separately? Finding Equilibrium Price Suppose that you are a manufacturer of a new mini refrigerator for college dorm rooms. You expect your product to be popular because of its compact size and high tech design. After a few weeks in the market you are able to develop the following market demand and ... |
ing computers as a freshman in college. He became so successful that he quit college in 1984 to focus on his business. He had sales worth $6 million in his first year. Dell’s success was largely due to his approach to marketing and production. He bypassed computer retailers and sold over the telephone directly to knowl... |
s must pay for a good or service. For example, the government has used various programs designed to provide price floors under corn, milk, and other agricultural products. The goal of these price floors is to encourage farmers to produce an abundant supply of food. EXAMPLE Minimum Wage as a Price Floor One well-known e... |
ket economy— demand, supply, and pricing. What’s the issue? How do demand, supply, and pricing affect the concert ticket market? Study these sources to discover the factors that affect demand and supply, and their impact on the price of concert tickets. A. Congressional Transcript Pearl Jam believed that TicketMaster C... |
u learned from this exercise about how markets reach equilibrium. Use to complete this activity. @ ClassZone.com Demand, Supply, and Prices 189 Market Structures In markets where businesses offer similar products, sellers compete by trying to make their products stand out from the competition. 190 CHAPTER 7 Market Stru... |
there are a large number of buyers, and the price on the wholesale market is easy to determine. Corn is a fairly standardized product, and buyers usually have no reason to prefer one farmer’s corn to another’s. Buyers will not pay more than the market price. In reality, there are several reasons that imperfect competit... |
stry because it controls the supply of a product that has no close substitutes. For example, De Beers once produced more than half of the world’s diamond supply and bought up diamonds from smaller producers to resell. In this way, it controlled the market. C HAR ACTERISTIC 2 A Restricted, Regulated Market In some cases... |
nd, so it draws fans from across the six-state region. Isolated locations or small communities may have other examples of geographic monopolies if the market is too small to support two similar businesses. Geographic monopolies have become less common in the United States. Cars allow people to travel greater distances ... |
some special service—a money-back guarantee if the customer is not satisfied with the meal, for example. One key method of product differentiation is the use of brand names, which QUICK REFERENCE Nonprice competition occurs when producers use factors other than low price to try to convince customers to buy their produc... |
10 Chapter 7 Comparing Market Structures KEY C ONCEPT S Each of the four market structures has different benefits and problems. And each type creates a different balance of power—namely, the power to influence prices— between producers and consumers. Consumers get the most value in markets that approach perfect competi... |
t Act. This gave government the power to control monopolies and to regulate business practices that might reduce competition. Over time, other laws strengthened the government’s ability to regulate business and to encourage competition. To understand why government officials pushed for antitrust laws, consider one of t... |
e routes and rates. Only safety regulations remained in place. Prior to 1978, there was limited competition, and airlines differentiated based on service rather than price. As a result of deregulation, the industry expanded as many new carriers entered the market. Increased competition led to greater efficiency. Econom... |
ich are closer to oligopoly? FIGURE 7.7 SALES CONCENTR ATION IN RE TA IL TR ADE Retail Market Percent of Total Sales by the Four Largest Firms Furniture Clothing Supermarkets Music Athletic footwear Books Discount department stores Source: U.S. Census Bureau, 2002 data 8 29 33 58 71 77 95 11. Applying Economic Concepts... |
ole proprietorships are not governed by as many regulations as other types of businesses. Also, sole proprietorships have limited life, a situation in which a business ceases to exist if the owner dies, retires, or leaves the business for some other reason. Finally, sole proprietors have unlimited liability, a situatio... |
ip, p. 233 limited liability partnership, p. 233 As you read Section 2, complete a comparison and contrast chart to show similarities and differences between partnerships and sole proprietorships. Use the Graphic Organizer at Interactive Review @ ClassZone.com Sole Proprietorships One owner Partnerships Two or more own... |
ormation in written works: FIGURE 8 . 3 STARTS AND CLOSURES OF SMALL EMPLOYER FIRMS 2000 New Firms 574,300 Firm Closures 542,831 Bankruptcies 35,472 2001 585,140 553,291 40,099 2002 569,750 586,890 38,540 2003 553,500 572,300 35,037 2004 580,990 576,200 34,317 Sources: U.S. Bureau of the Census; Administrative Office o... |
board of directors. They sold the rest of the stock to raise money to expand the business. AP P LI CATION Applying Economic Concepts A. Frank and Shirley were worried about unlimited liability. How did incorporating protect them from this problem? Types of Business Organizations 239 Corporations: Advantages and Disadv... |
heir ability to compete against the largest sport-shoe maker, Nike. More efficient production usually leads to lower prices, which would draw consumers away from Nike. An example of a vertical merger took place in the late 1990s during a period when the oil and gas industry was undergoing major consolidations. Shell Oi... |
, 1 in New York 1 in Austin Employees 15,000 worldwide 150 in Austin Review the table and imagine what would happen if the companies merge. Write a paragraph describing the challenges and the benefits. Challenge If you were Bob, would you retire after selling Pipsqueak, or would you want to continue running the company... |
he neighborhood. Challenge Imagine a cooperative you and your friends might form. Describe how it would operate and how it would save you money. Types of Business Organizations 251 Case Study Find an update on this Case Study at ClassZone.com Apple: The Evolution of One Company Background Steve Jobs and Steve Wozniak j... |
develop a new “ideal” business structure. Step 5. Share your business structure with the rest of the class, and compare your efforts to those of your classmates. Types of Business Organizations 255 The Role of Labor The service sector makes up the largest part of the U.S. economy. More people work in offices than ever... |
40,000 30,000 20,000 10,000 0 Less th an hig h sch o ol So m e colleg e Hig h sch o ol grad u ate ) olleg e grad u ate A dvanced d egree 50 40 30 20 10 0 Less th an hig h sch o ol So m e colleg e Hig h sch o ol grad u ate C olleg e grad u ate A dvanced d egree Source: U.S. Bureau of Labor Statistics, 2005 data Source:... |
e for bowling alley managers is $16 per hour, why would a wage of $20 per hour result in a labor surplus? Why would a wage of $12 per hour lead to a labor shortage? 8. Solving Economic Problems What economic problem does the minimum wage try to address? 9. Applying Economic Concepts Explain why working conditions can e... |
emporary or part-time work. An independent contractor is someone who sells their services on a contract basis. The way people work has been transformed by technology. In the past, many workers needed to physically commute to and from an office in order to accomplish their work. The Internet and laptop computers have al... |
Workers in industrialized nations around the world faced similar problems, but this section will focus on the labor movement in the United States. To improve their bargaining power, factory workers in the 1800s began to join together and act as a group. A labor union is an organization of workers who collectively seek ... |
ED STATES Find an update on labor unions at ClassZone.com 40 30 20 10 1930 1935 1940 1945 1950 1955 1960 1965 1970 1975 1980 1985 1990 1995 2000 2005 Source: U.S. Bureau of Labor Statistics Year ANALYZE GRAPHS 1. During this time period, when was union membership highest? What percent of the labor force belonged to a u... |
tysomething Westerners are choosing. Sure, the trend will never make up for the thousands of positions lost back home, but for adventurous young people, a spell in a call center in Bangalore or Bombay can help defray the costs of a grand tour of the subcontinent and beyond. Source: BusinessWeek.com, January 16, 2006 Ca... |
a and a drink in the cafeteria at lunch. Or maybe you caught an early movie after school yesterday. To gauge the importance of money to the economy, imagine trying to make such transactions without the familiar paper bills and coins. More at ClassZone.com Go to ECONOMICS UPDATE for chapter updates and current news on s... |
espread modern use of paper money. Eventually, governments got involved with representative money by regulating how much metal needed to be stored to back up the paper money. One problem with representative money is that its value fluctuates with the supply and price of gold or silver, which can cause problems of infla... |
change Standard of value Store of value Challenge How well do cacao beans exhibit each of the physical and economic properties of money? Money and Banking 295 S E C T I O N 2 The Development of U.S. Banking TA K I N G N O T E S In Section 2, you will • describe how banking developed in the United States • identify the ... |
ew Deal program was the Banking Act of 1933, which instituted reforms such as regulating interest rates that banks could pay and prohibiting banks from selling stocks. The Federal Deposit Insurance Corporation (FDIC) provided federal insurance so that if a bank failed, people would no longer lose their money. This legi... |
E 2 Customers Can Earn Money When customers deposit their money in bank accounts, they can earn money on their deposits. Savings accounts and some checking accounts pay some level of interest. Banks offer other accounts, such as money market accounts and certificates of deposits (CDs), that pay a higher rate of interes... |
ctronic device that allows bank customers to make transactions without seeing a bank officer. A debit card can be used like an ATM card or like a check. A stored-value card represents money that the holder has on deposit with the issuer. 308 Chapter 10 Debit Cards Debit cards are similar to ATM cards but offer addition... |
ted with debt and loan repayment after college graduation. It’s Payback Time More student loans increase debt pressure on graduates. Student loans are two-edged: the more money a student can borrow, the more schooling falls within reach. But of course, the more debt a student has, the more painful repayment becomes. . ... |
e today that allows for a future benefit. The financial system is all the institutions that help transfer funds between savers and investors. Find an update on saving at ClassZone.com 318 Chapter 11 KEY CONCEPT S There are two things you can do with your money—spend it or save it. Savings is income not used for consump... |
and Treasury bills, which allow the U.S. government to borrow money for short periods of time. Return on Investment Time is an important factor in the level of return for many investments. FACTOR 2 Resalability There also are two kinds of markets based on whether the financial assets can be resold. Primary markets are... |
ieves that more knowledge about the benefits of investing in stocks and greater diversity in the investment industry will help bring the benefits of investing to people of all racial and economic backgrounds. APPLICATION Making Inferences B. Why might Mellody Hobson think it is important for families to talk about inve... |
alled capital gains. QUICK REFERENCE A stock exchange is a market where securities are bought and sold. Capital gain is profit made from the sale of securities. Why Buy Stock? Investors buy stock for two reasons. The first is to earn dividend payments, which are a share of the corporation’s profits that are paid back t... |
ort for the Dow Jones Industrial Average (DJIA)—is the most well known. (For help reading Figure 11.6, turn to the Skillbuilder on page 342.) Other U.S. indexes often cited include the Standard & Poor’s 500 (S&P 500) and the NASDAQ Composite. Global stock indexes include the Hang Seng Index (Hong Kong), the DAX (German... |
er receives every year until a bond matures. There are two reasons to invest in bonds—the interest paid on bonds and the gains made by selling bonds. Most people buy bonds for the interest. Generally, bonds are considered less risky than stocks because bondholders are paid before stockholders. It is important to determ... |
ith the price in mid-January 2006? Use information from the graph in your answer. 3. From January through April of 2006, the price of Apple shares fluctuated greatly. Volume of trading was also very heavy. Are these two facts related? Why? S E C T I O N 4 Assessment ClassZone.com AC T I C E 1. Use each of the three ter... |
country has the lowest rate of savings? 10. What is the overall trend from 1980 to 2000? FIGURE 11.12 SAV I NGS R ATES I N DIFFERENT COUNTRIES 20 18 16 14 12 10 8 6 4 2 0 1980 1985 1990 1995 2000 Source: Statistical Abstract of the United States Key: Japan France United Kingdom United States 11. Analyzing Causes and E... |
o buy, or import, goods made in foreign countries. Cars, car parts, and crude oil are the largest imports in dollar value. The GDP counts only net exports— the value of U.S. exports minus the value of U.S. imports. Two Types of GDP Economists use GDP to gauge how well a country’s economy is doing. When GDP is growing, ... |
ditures yields $5,803 billion, the nominal GDP for 1990. Check the source of the data to evaluate its reliability. Year 1980 1985 1990 1995 2000 2005 Consumption Expenditure Investment Expenditure Government Expenditure Net Export Expenditure Nominal GDP 1,757 2,720 3,840 4,976 6,739 8,746 479 736 861 1,144 1,736 2,105... |
nd Q1 shows the equilibrium level of real GDP. Think about business cycles. An increase in aggregate demand shifts the aggregate demand curve to the right (AD2). Aggregate demand becomes greater at all price levels, and equilibrium real GDP rises (Q2), marking an expansion phase. If aggregate demand were to decrease, t... |
y KEY C ONCEPT S The agency that tracks economic indicators and business cycles in the United States is the National Bureau of Economic Research (NBER). It measures contractions from peak to trough and expansions from trough to peak. NBER identified about 20 extended contractions, or recessions, in the American economy... |
GDP might simply reflect more workers contributing to the economy. Think of a potluck dinner. If each person brings one dish, the amount of food per person will be the same whether you invite 10 people or 100. To get a clearer picture of economic growth, economists use a measure called real GDP per capita, which is rea... |
needed, the more productive the economy becomes. Banks, stock markets, and similar institutions allow a country’s funds to be put to their best use. When such institutions do not exist or when they do not function efficiently, productivity is reduced. FIGURE 12.15 U. S. PR IVATE BUSI NESS MULTIFAC TOR PRODUC TIVIT Y 1... |
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