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Homework #2 - something that we should work for in the...

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September 9, 2009 Economics 201 Dr. Elliot Homework #2 In my opinion, the United States has more of a consumer goods economy. The production possibility curve I constructed shows that the US has more consumer goods being sold in its economy rather than capital goods. Consumer goods are also known as final goods. According to WISEGEEK, they are “things purchased by average customers and will be consumed or used right away.” Capital goods, according to Dr. Elliot, are human made inputs, also known as, “stuff that makes stuff,” or “anything we use to help us produce other stuff.” An example of a capital good is a piece of heavy equipment, i.e. a machine. While I do not believe that the United States has a capital goods economy, I do think it is
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Unformatted text preview: something that we should work for in the future. The United States does not manufacture many of the goods sold in its economy. The United States outsources its production of goods because it is significantly less expensive; however, manufacturing its own goods would be beneficial to the economy in a variety of ways. I think the most important would be the creation of more jobs. In our economy presently, this would be extremely helpful. Not having to rely on other countries for goods would be beneficial US because they could control prices on the products. Sources: • http://www.wisegeek.com/what-are-consumer-goods.htm...
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