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LECTURE # 2: THE AMERICAN ECONOMY?

LECTURE # 2: THE AMERICAN ECONOMY?. The Fundamentals of The American Economy. MARTIN LUTHER KING. WHAT WAS KING DOING IN HIS LAST DAYS BEFORE HIS DEATH? WORKING FOR ECONOMIC JUSTICE AND THE ABOLITION OF POVERTY (HE WAS ALSO WORKING AGAINST THE VIETNAM WAR)

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LECTURE # 2: THE AMERICAN ECONOMY?

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  1. LECTURE # 2: THE AMERICAN ECONOMY? The Fundamentals of The American Economy

  2. MARTIN LUTHER KING • WHAT WAS KING DOING IN HIS LAST DAYS BEFORE HIS DEATH? • WORKING FOR ECONOMIC JUSTICE AND THE ABOLITION OF POVERTY (HE WAS ALSO WORKING AGAINST THE VIETNAM WAR) • HE WAS IN MEMPHIS, TENNESSEE WHEN HE DIED WORKING ON BEHALF OF THE SANITATION WORKERS.

  3. II. ECONOMIC RESOURCES • WHAT IS THE DIFFERENCE BETWEEN A GOOD AND A SERVICE? • WHAT ARE THE FACTORS OF PRODUCTION ACCORDING TO YOUR TEXT? • HOW DO WE MEASURE THE ECONOMY?

  4. WHAT IS THE DIFFERENCE BETWEEN A GOOD AND A SERVICE? • GOODS-TANGIBLE PRODUCT • SERVICES-WORK THAT IS PERFORMED FOR SOMEONE ELSE

  5. B. WHAT ARE THE FACTORS OF PRODUCTION ACCORDING TO YOUR TEXT? 1. LAND-NATURAL RESOURCES. 2. LABOR-PHYSICAL AND MENTAL EFFORTS THAT CONTRIBUTE TO PRODUCTION. 3. CAPITAL-TOOLS, MACHINERY, AND BUILDINGS USED TO MAKE PRODUCTS. 4. ENTREPRENEURSHIP-INDIVIDUAL THAT START NEW BUSINESSES.

  6. C. HOW DO WE MEASURE THE ECONOMY? 1. GDP-TOTAL DOLLAR VALUE OF FINAL GOODS & SERVICES PRODUCED IN A COUNTRY WITHIN A SINGLE YEAR. 2. DOES NOT INCLUDE SECONDHAND SALES. (USED MATERIAL) 3. MULTIPLY THE NUMBER OF ITEMS PRODUCED BY THE AVERAGE PRICE. ADD THEM ALL UP=GDP. 4. DID THE ECONOMY EXPAND OR CONTRACT? 5. ONLY MEASURES QUANTITY, NOT QUALITY.

  7. III. ECONOMIC ACTIVITY AND PRODUCTIVITY • HOW DOES THE MARKET ANSWER THE THREE BASIC ECONOMIC QUESTIONS? • HOW DOES THE CIRCULAR FLOW CHART WORK? • NAME AND EXPLAIN THE FOUR SECTORS OF THE ECONOMY. • WHAT ARE THE COMPOMENTS TO ECONOMIC GROWTH?

  8. HOW DOES THE MARKET ANSWER THE THREE BASIC ECONOMIC QUESTIONS? • WHAT GOODS AND SERVICES WILL BE PRODUCED IS DETERMINED BY THE DOLLAR VOTES OF CONSUMERS. • HOW THINGS ARE PRODUCED IS DETERMINED BY THE COMPETITION AMONG THE DIFFERENT PRODUCERS. • FOR WHOM-WHO CONSUMES IS BASED ON THE DISTRIBUTION OF INCOME.

  9. HOW DOES THE CIRCULAR FLOW CHART WORK? • FACTOR MARKETS-ARE WHERE GOODS ARE MADE • PRODUCT MARKETS-ARE WHERE GOODS ARE SOLD

  10. NAME AND EXPLAIN THE FOUR SECTORS OF THE ECONOMY. • THE CONSUMER SECTOR-EARN MONEY IN FACTOR MARKETS/SPEND IT IN PRODUCT MARKETS • BUSINESS SECTOR-RECEIVE PAYMENTS/INVEST IT BACK IN THE FACTORS OF PRODUCTION • GOVERNMENT SECTOR-PURCHASE G&S/CHARGE FEES/COLLECT TAXES • FOREIGN SECTOR-WE BUY AND SELL/THEY BUY AND SELL

  11. TEST # 3 REVIEW • FOCUS ON ALL YOUR KEY TERMS • FOCUS ON YOUR ANSWERS TO YOUR TOPIC QUESTIONS THAT MATCH UP WITH THIS POWERPOINT • FOCUS ON LECTURE # 2

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