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ECON202-4-7-08 - decided in the economic market Every trade...

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What is the role of the FED? Stockmarket etc… in the American Governemnt. Economics can be defined in many ways. o Everything is essentially an economic decision Standard Definition : Economics is concerned with allocation of limited resources among unlimited want. o Economic Resources Factors of production Include: Labor, Land, Capital, and Entrepreneurs Labor : Comes from the population, 300 Million Half of which works, other half is not yet apart of the task force. Under 16 is not apart of the labor force. Productivity of Labor = Output/Input Land : Resources Productivity of Land = Output/ Land Input Capital: Physical trade of production. Entrepreneur: A risk taker who has new ideas who brings new prospective to their trade. Economic System: o Free Market/Capitalist System: When everyone’s share is
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Unformatted text preview: decided in the economic market. Every trade has its own trade and its own unique Market. USA, Britain, Japan. o Command Economy/ Communist: Government essentially has the overall final say in economic decisions. Everyone is paid the same. All decisions are in government’s hands. EX North Korea, only true command economy left. o Mixed Economy: Part of the economy is free; the government controls the other half. The government controls almost 1/3rd of U.S economy. Business and people control other 2/3rds. • Price: Lim ited Resource Wages. • Labor is lim ited. • Land is lim ited: Rent. Capital Interest. • Entrepreneur is Profit. • NOTHING IS FREE . Everything has a price....
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