econ notes 2 - 5. Income and Wealth a. Income is money you...

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1. Public sector a. The government 2. Private Sector a. Businesses and houesholdes i. Eg. Public schools vs private schools. 3. Infrastructure a. Transportation network i. Roads, highways, bridges, railroad tracks, airports, sea ports, canals… b. Telecommunications network i. Telephone lines, communications satellites c. Utilities i. Electric grid, oil pipelines, gas pipelines, storm sewers and sanitary sewers, water pipes, waste water treatment facilities d. Dams e. Infrastructure is part of the physical capital of the economy. i. It may be provided by either the public sector or the private sector - their roles vary among countries and over time. 1. Eg. Electricity, telephone service. 4. Economic Policy a. Efforts by the government to maintain or improve the performance of the economy. i. Eg. Fiscal policy involving the government's budget - both taxation and government spending. 1. Eg. Monetary policy involving interest rates and the abailability of credit. 2. Eg. Trade policy.
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Unformatted text preview: 5. Income and Wealth a. Income is money you receive. i. Earned income from working 1. Wages and salaries ii. Property income in return for allowing others to use your property. 1. Interest, profit, renting iii. Transfer income - from government transfer payments such as 1. Eg. Social security. b. Wealth is things that you own after debt. Or your net worth. i. Calculate the worth of everything you own, and then subtract your debt (what you own - debt=net worth OR Assets-Liabilities=NW) 6. Specialization a. An individual or business or country ect. Produces only some of the goods and services it uses. It trades to obtain the rest. 7. Trade a. Also called exchange - buying and selling i. May involve money or it may occur by barter of services or goods. 8. Market a. The voluntary buying and selling of a good or a service 9. Price a. The amount of money established as the payment for 1 unit of a good or service....
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This note was uploaded on 02/12/2009 for the course ECON 100 taught by Professor Hayworth during the Winter '08 term at Eastern Michigan University.

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econ notes 2 - 5. Income and Wealth a. Income is money you...

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