Chapter 4 - Chapter 4 Book Notes Chapter 4 1 Functional...

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Chapter 4 Book Notes Chapter 4 1. Functional distribution of income a. How the nations income is apportioned among wages, rents, interest, and profits 2. Personal distribution of income a. How the nation’s total income is divided among individual households b. Nation is divided up by 20% 3. Durable goods a. 11% of spending is on this b. Products that last 3 years or more i. Cars, PCs, furniture 4. Nondurable goods a. Expected life of less then three years i. Food, clothing, and gas b. 29% 5. Services a. 60% b. Work done for consumers i. Lawyers, Barbers, docs ii. “Service-oriented economy” 6. Plant a. Physical establishment that performs one or more functions in fabricating and distributing goods and services i. Factory, farm, mine, store, or warehouse 7. Firm a. Organization that employs resources to produce goods and services for profit and operates one or more plants 8. Industry
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Chapter 4 Book Notes a. Group of firms that produce the same or similar products 9. Sole proprietorship a. Business owned and operated by one person i. Usually the owner personally supervises its operation 10. Partnership a. Form of business organization is a nature outgrowth of sole proprietorship b. In a partnership, two or more people agree to own and operate a business together i. Usually a pool of funds 11. Corporation a. Legal creation, can acquire resources, own assets, produce and sell products, incur debts, extend credit, sue and be sued, and perform the functions of any other type of
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This note was uploaded on 05/09/2011 for the course ECON 102 taught by Professor Ashookshulka during the Spring '11 term at Harrisburg Area Community College.

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Chapter 4 - Chapter 4 Book Notes Chapter 4 1 Functional...

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