Essential economic activities consumption final use

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Essential Economic Activities Consumption: final use of goods and services by individuals to satisfy needs. May choose to save for consumption in the following periods. Flow of savings (either from individuals, business and government) add to the stock of available financial assets. Use of financial intermediaries help facilitate the savers to loan out to those who want to borrow Some borrowed funds could be used for creation of new investment goods – aim to maintain resources
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Distribution: Who gets what and how??? Distribution in form of exchange and in form of transfer – Main Q: who receive the incomes generated by production and the role of government, if any. Exchange relations: two agree to trade on the basis of mutuall agreed terms. Goods and labour markets – monetary flow (L/K income) Wages, rents, profits – controversial debate over which is the productive one!
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Distribution: Who gets what and how??? Taxes and transfers: funds flowing to and from gov. From – dependency needs not met elsewhere (care, shelter, education, health services) Two main types of transfer programs – social insurance and means-tested. Insurance- pool insurance (contributions) to hedge for risks Means-tested - non-contributory but income/assets/wealth being tested TR: Social Insurance Institution, Unemployment Insurance Fund, Social Assistance and Solidarity
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Distribution: Who gets what and how???
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  • Fall '11
  • boun
  • Economics, Gini coefficient, Income inequality metrics, Income distribution, Essential Economic Activities

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