Economics 200 - Ch. 3 Notes

Economics 200 - Ch. 3 Notes - Econ 200 Ch. 3 Notes The...

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Unformatted text preview: Econ 200 Ch. 3 Notes The Household In earlier times, family members specialized in a specific farm task (cooking, making clothes, tending livestock) Growth of urban factories increased demand for factory labor. The rise of two-earner households affected the family as an economic unit. Utility the satisfaction received from consumption; sense of well-being Utility maximization depends on each households subjective goals, not on some objective standard.-Households use their resources (capital, labor, natural resources) to satisfy their unlimited wants, such as the production of goods and services in their homes. Proprietors are people who work for themselves (farmers, plumbers, doctors). Over two-thirds of personal income in the United States comes from labor earnings than from the ownership of other resources such as capital or natural resources . Transfer payments outright grants given to individuals from the government When personal income comes into the household, most goes to personal consumption in three categories: (1) durable goods (goods expected to last 3+ years); (2)...
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This note was uploaded on 04/17/2008 for the course ECON 200 taught by Professor Newton during the Spring '08 term at Ohio State.

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Economics 200 - Ch. 3 Notes - Econ 200 Ch. 3 Notes The...

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