1. Unit 7 Economics Macroeconomics
December 2, 2013

2. What is Economics?

3. The study of scarcity, or how society tries to satisfy unlimited wants through the use of limited resources.

4. Words to Know:
Scarcity: the gap between what the consumers would like (UNLIMITED) and what the consumers can get (LIMITED).
Trade Off: the process of giving up one desire in order to satisfy another desire.
Opportunity Cost: the value of what we give up in order to get or do something else. (LOST)

5. Trade Offs &Opportunity Costs
Two highly talented athletes want to compete for Coach ‘M’ who has only 1 opening on the team. Each are equally talented. Since he can only keep one, he must choose:
he decides to keep athlete ‘X’ because he is also a good student and is highly ‘coachable’.
What was the trade off?
What is the opportunity cost?

6. Opportunity cost is what you lost! 

7. Need: something that is required
Examples:
Want: something that is desired
Good: a tangible product
Service: a treatment (you cannot touch it!)

8. Production: the process of making goods or services.
Consumer: a buyer
Examples:
Producer: The seller
Production: the process of making goods or services.

9. December 3, 2013

10. Review Budgeting Wage: $11.00 How much do they make an hour?
How much do they make a week?
How much do they make a month?
How much do they make a year?
Salary: $110,000.
How much do they make an hour?
How much do they make a week?
How much do they make a month?
How much do they make a year?

11. Review, Opportunity Cost
On Saturday Ty’Shawn is thinking about going to the Panthers game. If he doesn’t go to the game he might stay home and work on homework, help his neighbor paint his house, or hang out and watch TV. What is an opportunity cost of Ty’shawn choosing to help his neighbor?
What is the opportunity cost of choosing to go to college?

12. Review, Opportunity Cost
The North Carolina government decides to build more prisons at the cost of $20.5 Billion. In order to do this they will increase the sales tax. The state decided to build prisons instead of much needed schools, rehabilitation programs, and gun safety programs.
John decided to go a party Friday night instead of studying for his Civics and Economics Test. Studying increases his chances of passing the Goal 6 test. He could have studied for his test, or gone to the movies.

13. Review, Opportunity Cost
Tom chose to get a massage this week instead of getting new sneakers or pay for his cell phone bill and cable bills.
Carrie decided to spend her last $3.00 on a bottle of lotion. During lunch the next day she is unable to buy herself any food. She is hungry the rest of the day. She gets into her car and her gas light is on E.
Jaquan studied all night for his Geometry Test. He wanted to go out with is friends and go see the new Happy Feet Movie. He passed his test with a 97%.

14. Personal Financial Literacy
Online!!!!!
Visit
Select ‘Login’ (on the top right)
Select ‘Sign-Up’(on the top right)
Put in Information you will remember!!!!!
When you create a LOG-IN! REMEMBER YOUR INFORMATION! WRITE IT DOWN! TAKE A PICTURE! REMEMBER IT!!!!!!!!!!!!!!!!!!!!!!!!
After you do this, get out a pair of headphones, and Sit tight and wait 

15. 3 Basic Economic Questions
What to produce?
How to produce?
For whom to produce?

16. THE FACTORS OF PRODUCTION What to produce?

17. There are 4 Factors of Production:
Land or Natural Resources
Capital
Labor
Entrepreneurship

18. Land or Natural Resources
Materials that are NATURALLY MADE and transformed into something else
Examples:
Oil
Timber
Land
Crops
Natural gas
Milk

19. 2 Types of Natural Resources
RENEWABLE
Can be replaced or renewed or recycled
ex: wood, water, crops
NON-RENEWABLE
Once used, resource is gone
Ex: Oil, Natural Gas, Gold

20. LABOR PEOPLE who work to produce a good or service Example:
Construction worker
Teacher
Line cook

21. ALWAYS a PERSON!

22. Types of Labor
Blue Collar: typically performs “manual” labor (uniform)
White Collar: typically performs more “business” like labor
Professional: most advanced type of labor- highest educational degrees.
Skilled: typically knows a craft

23. Capital
PHYSICAL
Man-made instruments that assist in making something else
Examples:
Hammer
Robot
Book
Computer

24. ALWAYS a THING!

25. Capital HUMAN Training programs Skills development Advanced degrees
Investment in knowledge or training for a laborer to become more productive
Examples:
Training programs
Skills development
Advanced degrees

26. Entrepreneurs
People who RISK time and money ($) to start their own business and organize the other factors of production.
Examples:
P. Diddy
Lemonade Stands
Martha Stewart

27. December 10, 2013

28. Agenda Notes: Computer Lab Productivity Types of Economies
30 Minutes-Part 1-3 PFL Project
30 Minutes on EverFi.com
Everything is due by Friday

29. Productivity

30. Productivity
The measure of the efficient use of an economy’s resources.
Making the MOST of the resources you have.
Utilizing resources to 100% of their capacity.
UNDERUTILIZATION: not using resources efficiently
Production Possibilities Curve: graphic representation of an economy’s productivity potential

31. A Production Possibilities Curve
Units of food Units of clothing
(millions) (millions) 8m
7m m
6m m
5m m
4m m
3m m
2m m
1m m m
Units of food (millions)
Units of clothing (millions)

32. Productivity
The more productive a nation’s economy, the more potential for profit.
A company’s goal is to maximize profit. One way this can be done it to increase productivity.

33. Division of Labor When work is divided amongst many workers.
Each worker specializes in one task making the work go faster and more efficient.

34. Assembly Line
Each member of the line does the same procedure or task on each input item.
The more items created the more potential for profit a company has.

35. Specialization
When each worker learns a specific/one job and becomes a professional in that specific task.

36. Law of Diminishing Returns
By adding more factors of production (i.e. technology, better trained workers, better entrepreneurship) it leads to greater efficiency.
But ONLY to a certain
point and then you begin
to lose efficiency.

37. Law of Diminishing Returns
Maximum returns is 300- using 200 agents.
When you add any additional agents, the number of returns decreases.

38. Comparative Advantage
When a nation has an advantage in the production of a particular product over another.
Example:
The Southern Colonies had a comparative advantage to produce cotton over the New England Colonies.

39. Types of Economies

40. Types of Economic Systems
Traditional
Command
Market
Mixed

41. Traditional Economy Determined by tradition, ancestors, customs
What did you Produce?
Determined by tradition, ancestors, customs

42. How did you Produce it?
Produce the same way its always been done; NO SPECIALIZATION
For Whom did you Produce?
Produce for tribe, village, local community
Examples:
Ex. Native American, Aborigines, Amish
Barter: trade item for item (no money)
* limited growth potential!

43. Command Economy Determined by the government or central planner
What did you Produce?
Determined by the government or central planner

44. How did you Produce it?
Told how to by central planner; SPECIALIZATION
For Whom did you Produce?
The gov’t or central planner
Ex. China, N. Korea, the former U.S.S.R. (Soviet Union)

45. Market Economy Determined by whatever would make the most profit
What did you Produce?
Determined by whatever would make the most profit

46. The way that made the most profit; SPECIALIZATION
How did you Produce it?
The way that made the most profit; SPECIALIZATION
For Whom did you Produce?
Consumers, people interested in product
Ex. UNITED STATES!

47. Mixed Economies Have elements of market economies with some command
Ex. Canada, France, England

48. Pick up the THREE Sheets!
December 12, 2013
Pick up the THREE Sheets!

49. Agenda Housekeeping What time do we have left? Demand .ppt
Individual Work
Changes
Supply
Supply and Demand, The Epic Merger
Equilibrium Prices
Shortages and Surpluses

50. The desire to own something and the ability to pay for it!
Demand
The desire to own something and the ability to pay for it!

51. The Law of Demand
The Law of Demand states that as prices decrease people are willing/able to buy more. As price increases people are willing/able to buy less.
Inverse/opposite relationship
P D P D

52. Demand Schedule Demand Curve
Price Quantity
Demand Curve
Graphic representation of the demand schedule.
y-axis = price
x-axis = quantity
$5.00
100
$10.00 70
$15.00 50
$20.00 30
$25.00 20
$35.00 10

53. Market Demand Curves
Show how people’s buying habits will change at certain prices ONLY
Show a specific market only
Assume no other factors change (just price)

54. WHY WOULD THERE BE A CHANGE IN DEMAND?
Shifts in Demand
WHY WOULD THERE BE A CHANGE IN DEMAND?
Consumer’s income changes: As income increases, demand increases.
Consumer Expectations: if shortage is expected, demand increases
Population Size: Population increases, demand increases

55. 4. Consumer Taste: If a good becomes popular, demand increases.
5. Change in Price of Related Goods:
* Compliments: goods bought together
Comp. good price increases, the
good’s demand decreases
*Substitutes: goods used in place of
one another. If a substitute price increases, the good’s demand
increases

56. People’s Income Increases
Effect on Demand
Demand Increases
(shift right) P D1 D2 Q

57. Bad Weather (for product)
Effect on Demand
Demand Decreases
(shift left) P D1 D2 Q

58. Substitutes!

59. Compliments

60. Substitutes!

61. Compliments!

62. Substitutes!

63. Substitutes!

64. Compliments!

65. Price of Complementary Good Decreases ex: peanut butter & jelly
Effect on Demand
Demand Increases
(shift right) D1 D2 Q

66. Price of Substitute Good Decreases ex: Pepsi & Coca-Cola
Effect on Demand
Demand Decreases
(shift left) D1 D2 Q

67. ELASTIC DEMAND: demand that is very sensitive to a change in price
ELASTICITY of DEMAND: How much the quantity demanded will change if the price rises or falls?
ELASTIC DEMAND: demand that is very sensitive to a change in price
goods that one might stop buying or cut back on as price increased (SUVs, Luxury items)**on a graph this demand curve will be FLAT

68. INELASTIC DEMAND: demand that is not very sensitive to a change in price
goods that you would buy at any price; there are few if any substitutes for these goods (milk, gas, prescription drugs)
**on a graph this demand curve would be very steep.

69. Independent Work! Work on the Predicting Demand Worksheet
Demand of Pizza!

70. The amount of goods or services available
Supply
The amount of goods or services available

71. The Law of Supply states the higher the price, the larger the quantity produced
think like a producer now; at a higher price firms earn additional revenue and more firms will have incentive to enter the market)
P S P S

72. Supply Schedule: shows only how price of goods changes the quantity supplied (all other factors remain constant)
Price Quantity
$0.50
100
$1.00
150
$1.50
200
$2.00
250
$2.50
300
$3.00
350

73. Supply Curve: Graphic representation of the supply schedule
Supply Curve: Graphic representation of the supply schedule. (rises from left to right)
y-axis = price x-axis = quantity supplied

74. WHY WOULD THERE BE A CHANGE IN SUPPLY?
Shifts in Supply
WHY WOULD THERE BE A CHANGE IN SUPPLY?
Change in the Price of an Input: Rise in input cost means decrease in supply because it is too expensive to make, and a fall in input cost will increase supply at all price levels.
2. Technology – lowers cost and increases supply.

75. Government subsidy: payment by the gov’t that supports a business or market. Subsidies increase supply.
Increase or Decrease in taxes: increasing taxes decreases supply, decreasing taxes increases supply
5. Government Regulation: Usually increases cost of production and decreases supply. (emission control on cars, FDA nutritional codes on food products)

76. 6. Future expectation of Prices: expect the price to go up the supplier will store goods to sell more in future.
7. Number of suppliers: as more suppliers enter a market to produce a good the market supply of the good will rise (and the opposite)

77. Costs of Inputs Decrease
Effect on Supply
Supply Increases
(shift right) P S1 S2 Q

78. Number of Suppliers Increases
Effect on Supply
Supply Increases
(shift right) P S1 S2 Q

79. Weather is bad for product
Effect on Supply
Supply Decreases
(shift left) S2 P S1 Q

80. Ex. Things that are cheap, use few resources, made quickly
Elasticity of Supply is a measure of the way suppliers respond to a change in price
Elastic Supply – a small increase in price has a big effect on supply (flat)
Ex. Things that are cheap, use few resources, made quickly

81. Ex. Diamonds, Bentley, Gas
Inelastic Supply – a small increase in price has a small effect on supply (steep)
Goods that are limited, take many resources to produce, require a lot of time to produce.
Ex. Diamonds, Bentley, Gas

82. Change in Supply

83. Reasons for change in Supply
Cost of Inputs
Number of Suppliers
Weather

84. Situation #1
Dick’s Sporting Goods and Academy goes out of business. What is the impact on basketballs in Charlotte?
-number of suppliers changes
-Supply Decreases

85. Situation #2
A hurricane destroys the orange groves in Florida. What is the impact on the supply of Orange Juice?
-weather changes
-Supply Decreases

86. Situation #3
The price of gas decreases. What is the impact of trucking companies?
-cost of inputs change
-Supply Increases

87. Situation #4
Nike moves their factory from the U.S. to China where workers are paid less. What is the impact on the supply of Nike’s shoes?
-change in input costs
-Supply Increases

88. Supply & Demand

89. Equilibrium: the point at which quantity demanded and quantity supplied are equal
At a point of equilibrium….
the price and quantity are balanced
the market for a good/service is stable
Disequilibrium: any price or quantity not at equilibrium

90. Price of CDs
Quantity Demanded
Quantity Supplied
$5.00
100 10
$10.00 80 20
$15.00 30
$20.00
$25.00

91. A Fully Labeled Supply & Demand
Equilibrium Point E1 P1
Market Clearing Price D1 Q Q1

92. Excess Demand (SHORTAGE): when quantity demanded is more than quantity supplied
Price is too low!
not enough! E1 P1 D1 Q QS QD

93. Excess Supply (SURPLUS): when quantity supplied is more than quantity demanded
Left-overs
Price is too high! P1 E1 D1 Q QD QS

94. A shift in the demand curve or the supply curve will result in a new equilibrium price.

95. Orange Juice PRICE ____ QUANTITY____ BECAUSE OF A CHANGE IN SUPPLY S2D1 Q2 Q1 Q

96. Coca-Cola PRICE ____ QUANTITY____ BECAUSE OF A CHANGE IN DEMAND S1 P

97. Video Games PRICE ____ QUANTITY____ BECAUSE OF A CHANGE IN DEMAND S1 P

98. Clothing PRICE ____ QUANTITY____ BECAUSE OF A CHANGE IN SUPPLY S1 P S2D1 Q1 Q2 Q

99. Government Intervention in a Market Economy
Price Ceiling: a maximum price that can be legally charged for a good or service
(example: rent control)
Price Floor: a minimum price for a good or service
(example: minimum wage)

100. Price Floor S1 P E1
MCP
Price Floor D1 Q

101. Price Ceiling S1 P
Price Ceiling E1
MCP D1 Q

102. Changing Prices
Inflation: a general increase in prices (over the years, prices rise and fall, but in the American economy, they have mostly risen)
Deflation: A substantial drop in the prices

103. Economic Theories

104. Capitalism
an economic system in which private citizens own and use the factors of production in order to seek a profit
Free Enterprise/Market Economy: another term used to describe the American economy

105. Features of Capitalism
1. Private Ownership of Resources: we have the freedom to own and use, or dispose of, our own property as we choose.
This gives us the incentive to work, save, and invest because we can keep what we earn.

106. Consumers have the right to choose the products that we will buy.
2. Self Interest Motives (economic freedom):
Each person can choose the type of job to have and when and where they want to work.
Consumers have the right to choose the products that we will buy.
Businesses have the right to choose the products that they will produce and sell.

107. 3. Consumer Sovereignty: the idea that the consumer is the “king” or ruler of the market
the one who determines what products will be produced
businesses try to produce the products that people want most.

108. 4. Available Markets: places where the prices of goods and services are determined as exchange takes place.
5. Competition: the struggle that goes on between buyers and sellers to get the best products at the lowers prices.

109. Adam Smith: Father of Capitalism
Smith believed that all individuals seeking a profit end up benefiting society as a whole.
wrote The Wealth of Nations
developed the idea of laissez-faire economics. (“to let alone”)
the government should not interfere in the market place.

110. Adam Smith: Father of Capitalism
believed that the invisible hand guides a nation’s resources to their most productive use.
Tools of the invisible hand include self-interest and competition.

111. Karl Marx: Father of Communism
Command Economy
Equality of the classes
wrote the Communist Manifesto.
“ Workers of all lands, unite”

112. Types of Business Structures

113. What is Liability?
Unlimited liability: Risk extends beyond your share in a company.
(you could lose EVERYTHING!)
Limited Liability: Risk only involves your share of the company.

114. Sole-Proprietorship Description Advantages Disadvantages
A business owned and managed by a single individual
Advantages Disadvantages
Easy to start - Unlimited Liability
Sole receiver of profit Limited Life
Full control
No additional taxes

115. Partnership Description Advantages Disadvantages
a business organization owned by two or more persons
Advantages Disadvantages
Easy to start - Share Profits
Specialization - Unlimited liability
No additional taxes - potential for conflict

116. Corporation Description
a legal entity owned by individual stockholders
Stockholders own shares of stock – a certificated ownership in a corporations.
Stockholders are part owners of the corporation.
Advantages Disadvantages
Limited Liability - expensive to start
Transferable ownership - Double taxes
Long life
Potential for growth more requirements & regulations

117. Franchise Description Advantages Disadvantages
Semi-independent company that is part of a parent corporation
Advantages Disadvantages
Built-in reputation Loss of freedom & decision making
Limited Liability

118. Non-Profit
A business that operates under a plan that distributes the profits made to other charitable organizations.
Advantages Disadvantages
Tax Exempt Relies on charity
Provides Services Follows Market

119. Multinational Corporations
Definition – a large corporation that produces and sells its goods and services throughout the world
Advantages Disadvantages
Provides jobs & Low wages
products around the world Poor working conditions
Spread new technology
around the world
Increases standard of living
in many poor countries

120. Corporate Combinations
Horizontal Merger – joining of two or more firms competing in the same market with the same good or service
EX: Sprint buys Nextell, AT&T buys Suncom
Vertical Merger – joining of two or more firms involved in different stages of producing the same good or service.
EX: Oils companies buy oil fields, tankers, and gas stations

121. The Circular Flow Model

122. Shows the movement of resources within an economic system.
Markets: place where goods & services are exchanged.
Sectors: units of consumers or producers

124. Product Market Provides goods & services to the following sectors:
-consumer
-business
-government
-foreign

125. Factor Market Receives labor and resources from the following sectors:
-consumer
-business
-government

126. Consumer Sector Provides LABOR to the FACTOR MARKET
Purchases GOODS & SERVICES from the PRODUCT MARKET.

127. Business Sector Receives resources from the FACTOR MARKET.
Sends finished goods to the PRODUCT MARKET.
Purchases goods from the PRODUCT MARKET to make other goods.

128. Gov’t Sector Receives resources from the FACTOR MARKET.
Provides goods & services to the PRODUCT MARKET.
Purchases goods & services from the PRODUCT MARKET.

129. Foreign Sector
Buys and sells goods & services in the PRODUCT MARKET.

130. The circular flow of goods and incomes
fig

131. The circular flow of goods and incomes
Goods and services
fig

132. The circular flow of goods and incomes
Goods and services $
Consumer
expenditure
fig

133. Services of factors of production (labor, etc)
The circular flow of goods and incomes
Goods and services $
Consumer
expenditure
fig
Services of factors of production (labor, etc)

134. Services of factors of production (labor, etc)
The circular flow of goods and incomes
Goods and services $
Consumer
expenditure
Wages, rent
dividends, etc. $
fig
Services of factors of production (labor, etc)

135. Conglomerate – merging of more than three businesses that make unrelated products
EX: Phillip Morris & Kraft, General
Electric & NBC

136. Types of Market Structures

137. Perfect Competition Many buyers and sellers in the market
Sellers offer identical products
Buyers and sellers are well informed about products
Sellers are able to enter and exit the market freely

138. Perfectly competitive markets are efficient at equilibrium!!
Few markets are perfectly competitive because barriers keep the companies from entering or leaving markets easily
start-up costs are high
many require high degrees of technology

139. Monopoly A market dominated by a single seller
No variety of goods and the seller has complete control over prices
Forms when barriers prevent firms from entering a market with only one seller

140. Government Monopoly: a monopoly created by the government
Natural Monopoly: a market that runs most efficiently when one large firm supplies all of the output
Example: public output
Government Monopoly: a monopoly created by the government
Ex: allowing a natural monopoly to form
Ex: patent: inventor of the new product has exclusive rights to sell it

141. Antitrust laws: laws that encourage competition in the market
Remember one of the goals of the gov’t in the US has been to encourage competition in the economy
Antitrust laws: laws that encourage competition in the market
Sherman Antitrust act: banned monopolies and other business combinations that prevented competition 1890)…this act was used to break up companies like AT&T

142. Oligopoly
a market structure in which a few large firms dominate a market (4 largest firms produce 70-80% of the output)
barriers can also create oligopolies…like start-up costs and technology
Ex: cell phones, airlines, cruise ships

143. Stop!!!
End Economics Part 3

144. Unit-8

145. Emani Cruz
Enizaha Irvin
Danixia Jiron
India Livingston
Lesley Sanchez
Nicolas Warren
Richard Watson

146. The Business Cycle

147. Economic Indicators
1. GDP – Gross Domestic Product - measures the output of the entire economy 2. Personal Income - measures the total income of families in one year, higher the income the more money they have to spend 3. Stock Market Averages - reflects investors attitude and (S&P500, The Dow) movement of interest rates 4. Unemployment rate- reflects layoffs of workers; how many unemployed at one time

148. Expansion:
a period of economic growth
real GDP rises
Employment increases
Production increases
Money supply increases
Consumer spending increases
Prices increase (INFLATION)

149. Peak:
The highest point in the business cycle
Full Employment
(those who want a job have a job)
Production at full capacity
Money supply high
Consumer spending high
Prices high

150. Contraction:
a period of economic decline
real GDP declines
Employment decreases
Production decreases
Money supply decreases
Consumer spending decreases
Prices decrease (DEFLATION)
Long contraction (6 months) called a RECESSION

151. Trough:
The lowest point in the business cycle
High rates of unemployment
Production nearing a standstill
Money supply low (limited lending)
Consumer spending low
Prices low
Long period (1 yr.) called a DEPRESSION

152. Building permits- indicates construction activity
Manufacturers’ new orders- predicts
actual production change
Consumer Price Index - measures the rate of change in the price of 400 consumer goods

153. December 17, 2013
Grab a MAP!

154. The Stock Market Buying Stock:
Corporations sell stock to raise funds. Stock represents ownership in the corporation and is issued in portions called shares.

155. Stockholders make money through:
dividends- a portion of a corporation’s profit, usually paid out quarterly
capital gains- money made when an investor sells stock for more than he/she paid for it
Stockholders lose money through:
capital loss- money lost when an investor sells stock for less than he/she paid for it or when a company doesn’t make a profit, and can’t pay out dividends

156. Stock split- when each single share of stock splits into more than one share. This is done to encourage investors to buy the stock, and generally results in a rise in stock value afterwards.
Stock Trade:
Stockbrokers- link buyers and sellers of stock; usually work for a brokerage firm that specializes in trading stock.

157. Stock is bought and sold on stock exchanges. Most important in the US:
New York Stock Exchange (NYSE)- the country’s largest and most powerful exchange; only for the largest and best-known companies (called blue chip companies)
OTC Market (over the counter)- stock sold electronically
Nasdaq (National Association of Securities Dealers Automated Quotations)- the American market for over-the counter trades
Daytraders- buy and sell stock rapidly in hopes of trying to make a profit; very risky

158. Measuring the Stock Market
Bull Market- when the stock market steadily rises over a period of time
 Bear Market- when stock market steadily falls over a period of time
   
The picture of stock performance can be determined by looking at the
Dow Jones Industrial- which represents about 30 large companies
S & P 500 (Standard and Poors)- which tracks price changes in 500 companies.

159. Fiscal & Monetary Policy

160. What is the purpose of Fiscal and Monetary Polices?
To ensure economic expansions and contractions are not too severe
NOT

161. Economic Problem: Inflation
Occurs when the market is flooded with too much money in the hands of consumers
So… the Goal is to DECREASE the amount of $ in the hands of consumers

162. Fiscal Policy (Congress)
Taxes
Gov’t Spending
Welfare (transfer) payments

163. Economic Problem: Unemployment
Occurs when the market slows down due to a lack of consumer spending.
So… the Goal is to INCREASE the amount of $ in the hands of consumers

164. Fiscal Policy (Congress)
Taxes
Gov’t Spending
Welfare (transfer) payments

165. Economic Problem: Inflation
Occurs when the market is flooded with too much money in the hands of consumers
So… the Goal is to DECREASE the amount of $ in the hands of consumers

166. Monetary Policy (Federal Reserve)
Interest (Discount) Rates
Reserve Ratio
Sell Bonds
TIGHT Monetary Policy

167. Economic Problem: Unemployment
Occurs when the market slows down due to a lack of consumer spending.
So… the Goal is to INCREASE the amount of $ in the hands of consumers

168. Monetary Policy (Federal Reserve)
Interest (Discount) Rates
Reserve Ratio
Buy Bonds
LOOSE Monetary Policy

169. December 18, 2013

170. Government Regulations
P. 2 #5

171. Social Security Act of 1935 (SSA)
WHAT IT DID
Provides money to people who cannot support themselves
IMPACT ON US ECONOMY
Stabilizes the economy in times of economic depression

172. National Labor Relations Act, 1935
WHAT IT DID
Workers have the right to join unions and use collective bargaining
IMPACT ON THE US ECONOMY
Gave protection and power to the workers

173. Definitions
Unions- an organized association of workers formed to protect and further their rights and interests; a labor union.
Collective Barganing- negotiation of wages and other conditions of employment by an organized body of employees.

175. Fair Labor Act, 1938 WHAT IT DID IMPACT ON THE US ECONOMY
Est. minimum wage of 25 cents per hour and time and a half for overtime
IMPACT ON THE US ECONOMY
Set a price floor on labor for the U.S.

176. Taft Hartley Act, 1947 WHAT IT DID IMPACT ON THE US ECONOMY
Put restrictions on labor unions
IMPACT ON THE US ECONOMY
Unions cannot be all powerful

177. Economic Globalization
North American Free Trade Agreement
(NAFTA)
World Trade Organization, WTO
European Union (EU)
International Monetary Fund (IMF)
World Bank
United Nations

178. NAFTA
On January 1, 1994, the North American Free Trade Agreement between the United States, Canada, and Mexico (NAFTA) entered into force.
It allows these countries to trade freely with no import or export taxes
It is supposed to increase trade in North America
Many US Companies moved or outsourced their jobs to Mexico in order to decrease labor cost

181. World Trade Organization
The World Trade Organization (WTO) is the only global international organization dealing with the rules of trade between nations.
It allows for a legal body to oversee trade between nations

182. European Union
The EU was created in the aftermath of the Second World War.
to foster economic cooperation
a huge single market has been created and continues to develop towards its full potential

184. IMF an organization of 188 countries
working to foster global monetary cooperation
secure financial stability
facilitate international trade
promote high employment and sustainable economic growth
reduce poverty around the world.

185. World Bank End extreme poverty around the world in one generation!
End extreme poverty by decreasing the percentage of people living on less than $1.25 a day to no more than 3%
Promote shared prosperity by fostering the income growth of the bottom 40% for every country

186. The United Nations
The United Nation is a legislative organization that fosters:
Peace and Security
Development
Human Rights
Humanitarian Affairs
International Law

187. The United States Major Economic Regions

188. The Frost Belt
The Frost Belt is a region of the US considered to include the Northeast of the Great Lakes Region, and much of the Upper Midwest. The region is known for its cold, frost-producing winters and heavy snowfall.

189. The Rust Belt
A postindustrial region straddling the NE and the East North Central States, referring to economic decline, population loss and urban decay due to the shrinking of its once powerful industrial sector. The term gained popularity in the United States in the 1980s

190. Sun Belt
The main defining feature of the Sun Belt is its warm-temperate climate with extended summers and brief, relatively mild winters; Florida, the Gulf Coast, and southern Texas, however, have a true subtropical climate.
The Belt has seen substantial population growth since the 1960s due to an influx of immigrants, both documented and undocumented; a surge in retiringbaby boomers; and the attractiveness of a mild winter climate. 

191. The Sun Belt

192. Silicon Valley
 It is home to many of the world's largest technology corporations as well as thousands of small startups. The term originally referred to the region's large number of silicon chip innovators and manufacturers, but eventually came to refer to all high-tech businesses in the area, and is now generally refers to the American high-technology sector.
Silicon Valley continues to be a leading hub for high-tech innovation and development, accounting for one-third (1/3) of all of the venture capital investment in the United States.
Geographically, Silicon Valley encompasses all of the Santa Clara Valley, the southern Peninsula, and the southern East Bay.

193. Silicon Valley

194. North Carolina Research Triangle
The Research Triangle Park is home to more than 170 global companies, including: IBM, GSK, Syngenta, RTI International, Credit Suisse, and Cisco,that foster a culture of scientific advancement and competitive excellence.
RTP is located between three major universities: Duke University in Durham, North Carolina State University in Raleigh, and the University of North Carolina at Chapel Hill.