CH 2 - CH 2 US Economy -What do we produce? Bases on...

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CH 2 US Economy - What do we produce? Bases on scarcity. -Consumption Goods- refer to goods and services purchased by individuals and households 3 Categories of goods- used as a % of GDP Consumer Goods-60% -Durable Goods- last 3 years or more (relies on customers attitude) -Non-durable Goods- consumed by use (toothpaste) -Services Capital goods 11%- goods and services bought by businesses to increase their productive capacity (looking further down the road/machines) Government Goods 17% -goods and services purchased at any level of government Export Goods 12% -goods and services produced domestically/in this country and sold in another country - How do we produce goods/services- relies completely on the factors of productions Factors of Production-resources used to produce all goods and services 1. Land -all natural resources used in production 2. Labor -work, time, and effort people devote to producing goods and services Labor force participation rate - 64.3% in the United States 3. Human capital
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This note was uploaded on 05/03/2011 for the course SPAN 110 taught by Professor Jones during the Fall '10 term at Saint Louis.

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CH 2 - CH 2 US Economy -What do we produce? Bases on...

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