1. Factors of production
Land: all natural resources
Labor: 16 or over working or actively seeking work
Capital: produce means of further production
Entrepreneurship: innovator or risk taker
2. Return to the fact: rent, wages, interest, profit
1. (a) The total amount of money that the United States federal government owes to
creditors. The government's creditors include all individuals, businesses, governments
and other organizations that own U.S. government debt securities.
Paper #2- 2pages due on Tuesday, November 8th
In preparation for this paper, please think about the topics we have covered in class
concerning American values, morals, freedom and progress. We have discussed the
following sweeping topics from the 18th to
1. GDP definition: is supposed to measure the total value of final goods and services
newly produced in a country over a period of time.
1) Product approach: GDP=household and institutions production+ business production+
Okuns law: an empirical inverse relationship between the
unemployment rate and rapid (above average) real GDP
Full-employment output: For modeling purposes, a level of
output that is assumed to correspond to a case of no excessive
US unemployment rate from 1948-2008
(b): Based on the graph,10 recessions occurred over this time.
Q2 (a): 9.1
(b): August 2011: 7.4
(c): Highest: Nevada Lowest: North Dakota
U-1, persons unemployed 15 weeks or longer
1. Economics: is the study of the way people organize themselves to sustain life and
enhance its quality.
The four essential economic activities are resource maintenance and the production,
distribution and consumption of goods and services.
1. Empirical investigation: observation and recording of the specific phenomena of
2. Time series data: observations of how a numerical variable changes over time.
3. Negative (or inverse) relationship: the relationship between two vari