Competition and Market Structures
Market structures include perfect competition, monopolistic competition, oligopoly, and monopoly. Graphic Organizer As you read the section, complete a graphic organizer similar to the one below by identifying five conditions that characterize perfectly competitive markets. laissez-faire, market structure, perfect competition, imperfect competition, monopolistic competition, product differentiation, nonprice competition, oligopoly, collusion, price-fixing, monopoly, natural monopoly, economies...
Forms of Business Organization
Businesses may be organized as individual proprietorships, partnerships, or corporations. Graphic Organizer As you read about business organizations, complete a graphic organizer similar to the one below to explain how the three types of business organizations differ from one another. sole proprietorship, proprietorship, unlimited liability, inventory, limited life, partnership, limited partnership, bankruptcy, corporation, charter, stock, stockholder, shareholder, dividend, bond, principal,...
Applying Economic Concepts
1. Automatic Stabilizers What automatic stabilizers have benefited you or your family in the recent past Could you have managed without them 2. Multiplier Provide an example of how a 100,000 expenditure in your community would have a magnified effect as described by the multiplier. 3. Diversity of Opinion Some economists favor policies that stimulate demand, while others favor those that stimulate the supply of goods and services. Still other economists prefer policies based on the growth of...
Change in Mexico
For the first time, Mexico this year overtook China as the No. 1 supplier of clothing and textiles to the U.S. . . . Spurred by the North American Free Trade Agreement NAFTA , the surge in apparel exports has touched off an investment boom. Not only are manufacturers expanding their low-wage plants, but they are building high-tech operations to spin fibers and weave fabrics. . . . To encourage the growth of the industry, Mexico is trumpeting both its proximity to the U.S. and the benefits of...
Perfect Competition Market Price and Profit Maximization
Using Graphs Under perfect competition, the market forces of supply and demand establish the equilibrium price. The perfectly competitive firm treats this price as its demand curve and its marginal revenue MR because the firm will receive 15 for each and every unit it sells. Is perfect competition always a theoretical situation Explain. The profit maximizing quantity of output is found where the marginal cost of production is equal to the marginal revenue from sales, or where MC MR. This occurs...
Fiscal Policy and the Aggregate Demand Curve
Using Graphs Fiscal policies are designed to increase aggregate demand. Successive increases in aggregate demand or moving the economy from Hto put increasing pressure on the price level as the unemployed resources in the economy find employment. Which point on the graph represents the lowest aggregate demand Another key component of fiscal policy is the role of automatic stabilizers, programs that automatically trigger benefits if changes in the economy The Employment Report The Employment...
Effects of a Pollution Tax
Using Graphs A pollution tax shifts the cost of the negative externality back to the producer and the user of the product. In the example, how much of the 1 tax does the producer pay ADUffiWS T J TUS TRUTH-A -AMirnsiNS ecMvmis TOi'OOB MCTTJMmMU.V PLVhhU SEEN King Features Syndicate. ALL rights reserved. King Features Syndicate. ALL rights reserved. The Role of Government Truth-in-advertising laws are one way the federal government tries to improve the quality of information in the economy. How...
Elasticity of Demand
Consumers react differently to price changes depending on whether the good is a necessity or a luxury. Graphic Organizer As you read about price elasticity, complete a web like the one below to illustrate what effect a change in price has on products that are elastic, inelastic, or unit elastic. elasticity, demand elasticity, elastic, inelastic, unit elastic Objectives After studying this section, you will be able to 1. Explain why elasticity is a measure of responsiveness. 2. Analyze the...
Financing and Trade Deficits
A long-lasting trade deficit affects the value of a nation's currency and the price and volume of its exports and imports. Graphic Organizer As you read the section, complete a graphic organizer similar to the one below by describing the effects of a long-lasting trade deficit. foreign exchange, foreign exchange rate, fixed exchange rate, flexible exchange rate, trade deficit, trade surplus, trade-weighted value of the dollar After studying this section, you will be able to 1. Explain how...
Macroeconomic Equilibrium Dwk
Using Graphs The economy is at equilibrium when the quantity of real GDP demanded is equal to the real GDP supplied at a given price level. What happens to the price level when output increases Rags to riches. The expression is clich , but it captures the imaginations of millions of Americans who dream of success in the country's free market economy. They find inspiration in the stories of individuals who started what would some day become giant global corporations-individuals, perhaps, not...
The North American Free Trade Agreement
Using Maps The North American Free Trade Agreement NAFTA makes up the second largest free-trade area in the world, after the European Union. After NAFTA was implemented, trade between the three nations began to grow by 10 to 15 percent annually. Do imports or exports comprise the larger portion of Mexico's trade with Canada and the United States . lt Visit epp.glencoe.com and click on Textbook Updates Chapter 17 for Visit epp.glencoe.com and click on Textbook Updates Chapter 17 for 478 UNIT 5...
Employment and Union Affiliation
Source Bureau of Labor Statistics, 1999 mThe development of unions in the United States started in the colonial period. From there, unions waged a long uphill struggle that peaked in the 1930s. In 1778, printers in New York City joined together to demand higher pay. This protest was the first attempt to organize labor in America. Before long, unions of shoemakers, carpenters, and tailors developed, each hoping to negotiate agreements covering hours, pay, and working conditions. While only a...
Chapter 9 Summary
Taxes affect the allocation of resources, behavior, and economic growth. The incidence of a tax, or final burden of a tax, is affected by elasticity when demand for a product is elastic, less of the tax can be shifted to the buyer more can be shifted when demand is inelastic. Equity, simplicity, and efficiency are the criteria used to judge the effectiveness of a tax. Two principles, the benefit principle of taxation and the ability-to-pay principle of taxation, have been used to help select...
The Theory of Production
A change in the variable input called labor results in a change in production. Graphic Organizer As you read about production, complete a graphic organizer similar to the one below by listing what occurs during the three stages of production. theory of production, short run, long run, Law of Variable Proportions, production function, raw materials, total product, marginal product, stages of production, diminishing returns After studying this section, you will be able to 1. Explain the theory of...
Chapter 8 Assessment and Activities 1
Create webs like the ones below to help you organize your answer. 1. Civilian Labor Force As you go to and from school, take note of the various occupations around you. List at least 10 occupations, then classify them according to the four major categories of labor. 2. Minimum Wage Poll at least 10 people of various ages, asking for their opinions on the following statement There should be no minimum wage. Compile the responses and present your findings to the class. The Bureau of Labor...
Evaluating Economic Performance
The social and economic goals of the United States include economic freedom, economic security, and economic equity. Graphic Organizer As you read the section, indentify seven major economic and social goals by completing a graphic organizer like the one below. Social Security, inflation, fixed income Objectives After studying this section, you will be able to 1. Describe the basic economic and social goals used to evaluate economic performance. 2. Evaluate the trade-offs among economic and...
The 50 State Quarter Program The First Five Quarters
Delaware Pennsylvania New Jersey Georgia Connecticut Oklahoma New Mexico Arizona Alaska Hawaii Massachusetts Maryland South Carolina New Hampshire Virginia Nevada Nebraska Colorado North Dakota South Dakota New York North Carolina Rhode Island Vermont Kentucky Using Charts The United States Mint is introducing 50 new quarters over a 10-year period to celebrate individual states' histories and traditions. In what order are the quarters being released 294 UNIT 3 MACROECONOMICS INSTITUTIONS In...
Walt Disney
The name Disney is known around the world. Yet as a young man, Walt Disney was a failed filmmaker operating out of a makeshift studio in a garage in Los Angeles. Disney had moved there from Kansas City, where he had helped create cartoon advertisements for showings in movie theaters. Dreaming of making full-scale movies, he headed to Los Angeles then, as now, the film industry capital to pursue his dream. For five years, he struggled to make ends meet. Then he released an animated film...
Chapter 7 Assessment and Activities
Self-Check Quiz Visit the Economics Principles and Practices Web site at epp.glencoe.com and click on Chapter 7 Self-Check Quizzes to prepare for the chapter test. Self-Check Quiz Visit the Economics Principles and Practices Web site at epp.glencoe.com and click on Chapter 7 Self-Check Quizzes to prepare for the chapter test. Use all the terms below in four paragraphs, with each paragraph describing one of the major types of market structures. geographic monopoly imperfect competition...
The Changing Nature of Economic Policy
Mfjjn As you know, fiscal policy is the federal government's attempt to stabilize the economy through taxing and government spending. Fiscal policy involves planning a budget that has either surpluses or deficits that are intended to maintain a steady level of total spending in the economy. Fiscal policy can be either discretionary, passive, or structural. Discretionary fiscal policy is policy that someone must choose to implement. It requires an action by either the Congress and the president,...
The Cost of Economic Instability
Economic instability leads to social as well as economic problems. Graphic Organizer As you read the section, use a graphic organizer similar to the one below to describe the GDP gap. What causes the GDP gap to fluctuate stagflation, GDP gap, misery discomfort index Objectives After studying this section, you will be able to 1. Explain the economic costs of instability. 2. Describe the social costs of instability. Misery Index Do you know someone who has suffered from the problems associated...
Stabilization Policies
Government can promote economic growth through demand-side and supply-side policies. Graphic Organizer As you read the section, complete graphic organizers similar to the ones below by describing the role of government under demand-side and supply-side policies. fiscal policy, Keynesian economics, multiplier, accelerator, automatic stabilizer, unemployment insurance, supply-side economics, Laffer curve, monetarism, wage-price controls After studying this section, you will be able to 1. Explain...
Market Failures
Inadequate competition, inadequate information, and immobile resources can result in market failures. Graphic Organizer As you read the section, think about why maintaining adequate competition is a worthwhile goal. Use a graphic organizer like the one below to list effects of competition. market failure, externality, negative externality, positive externality, public goods After studying this section, you will be able to 1. Discuss the problems caused by inadequate competition. 2. Understand...
Summarizing Information
Have you ever read something and just a short time later forgotten what it was all about Summarizing information-reducing many sentences to just a few well-chosen phrases-helps you remember the main ideas and important facts contained in a longer reading selection. To summarize information, follow these guidelines Your summary should be much shorter than the reading selection. Your summary should contain the main ideas of the reading selection. Your summary should not contain your opinion. It...
Ihqmics
Self-Check Quiz Visit the Economics Principles and Practices Web site at epp.glencoe.com and click on Chapter 4 Self-Check Quizzes to prepare On a separate sheet ofpaper, match the letter of the term best 1. the desire, ability, and willingness to buy a product 2. a movement along the demand curve showing that a different quantity is purchased in response to a change in price 3. a statement that more will be demanded at lower prices and less at higher prices 4. a listing in a table that shows...
Drawing Inferences and Conclusions
To infer means to evaluate information and arrive at a conclusion. When you make inferences, you read between the lines, or draw conclusions that are not stated directly in the text. You must use the available facts and your own knowledge and experience to form a judgment or opinion about the material. International flags, airport display International flags, airport display Use the following steps to help draw inferences and make conclusions Read carefully for stated facts and ideas. Summarize...
The Evolution of Money
Money is any substance that functions as a medium of exchange, a measure of value, and a store of value. Graphic Organizer As you read the section, complete a graphic organizer similar to the one below that illustrates the characteristics of money. barter economy, money, medium of exchange, measure of value, store of value, commodity money, fiat money, specie, monetary unit After studying this section, you will be able to 1. Explain the three functions of money. 2. Identify four major types of...
Chapter 8 Assessment and Activities
Self-Check Quiz Visit the Economics Principles and Practices Web site at epp.glencoe.com and click on Chapter 8 Self-Check Quizzes to prepare for the chapter test. Self-Check Quiz Visit the Economics Principles and Practices Web site at epp.glencoe.com and click on Chapter 8 Self-Check Quizzes to prepare for the chapter test. Classify each of the terms below as pro-union, antiunion, or neither. 1. Describe current union influence in terms of membership and workers represented by unions. 2....
Comparing Economic Systems
Sets forth certain economic roles for all members of the community Stable, predictable, and continuous life Capable of dramatic change in a short time Little uncertainty over choice of career, where to work, or losing job Able to adjust to change gradually Individual freedom for everyone Lack of government interference Decentralized decision making Many basic education, public health, and other public services available at little or no cost Incredible variety of goods and services High degree...
Factors Affecting Demand
There are a number of factors that will cause demand to either increase or decrease. Graphic Organizer As you read about the determinants of demand, list each on a table similar to the one below and provide an example of each. change in quantity demanded, income effect, substitution effect, change in demand, substitutes, complements After studying this section, you will be able to 1. Explain what causes a change in quantity demanded. 2. Describe the factors that could cause a change in demand....
JSWfefig SkillH
Finding the Main Idea Read the excerpt below, then answer the questions that Monopolistic competition occurs when there are many producers of products that are almost the same. Firms in such a market try to make customers believe that the similar products are actually different. Each producer uses advertising to persuade the customer that his or her brand is superior. Firms that are successful have a monopoly on their name and reputation more than on their product. Customers are willing to pay...
The Production Possibilities Frontier
f Production can take '1 place anywhere on or J Using Graphs A production possibilities frontier shows the different combinations of two products that can be produced. What do points inside the frontier represent Most economic decisions can be made by using cost-benefit analysis, a way of thinking about a problem that compares the costs of an action to the benefits received. This is what Jesse did in the decision-making matrix shown in Figure 1.5. This decision can be made subjectively, as when...
Chapter 1 Assessment and Activities
Self-Check Quiz Visit the Economics Principles and Practices Web site at epp.glencoe.com and click on Chapter 1 Self-Check Quizzes to prepare Self-Check Quiz Visit the Economics Principles and Practices Web site at epp.glencoe.com and click on Chapter 1 Self-Check Quizzes to prepare Write the key term that best completes the following sentences. 1. Economic products designed to satisfy people's wants and needs are called_. . of a CD player can be expressed in dol- 3. Haircuts, repairs to home...
Dineh Mohajer
It might be hard to believe that a multimillion dollar business started in a bathroom, but that's exactly where Dineh Mohajer's Hard Candy cosmetics company was born. The year was 1995. Fed up with a life of hard study as a pre-med student, the 22-year-old Mohajer recalls making a conscious decision to make a change. I used to stare out the window, she said, and think, 'I wonder what the civilians are doing out there ' So that summer I told myself, this is my last summer of real life. I'm...
Helen Young Hayes
Helen Hayes is the type of person people trust. In fact, people have entrusted her with more than 23 billion of their money. Hayes is one of the most successful mutual fund managers in the world. Picking the right stocks, especially foreign ones, takes research. But what sets Hayes apart, and is a key to her success, is her uncanny ability to read people. When she meets with corporate executives, for example, she pays a great deal of attention to body language, which she maintains can reveal as...
Projected Change in US Population by Race and Ethnic Origin 19902050
1990 1995 2000 2005 2010 2020 2030 2040 Source Population Projections in the United States, by Age, Sex, Race and Hispanic Origin 1992-2050, U.S. Bureau of the Census Using Graphs The distribution of population by race is projected to change dramatically by the year 2050. Which ethnic components of the population are expected to make the largest gains Which will incur the largest losses People born during the baby boom, the high birthrate years from 1946 to 1964, make up a sizeable portion of...
Scarcity and the Science of Economics
Scarcity forces us to make choices. We can't have everything we want, so we are forced to choose what we want most. Graphic Organizer As you read the section, complete a graphic organizer like the one below by listing and describing the three economic choices every society must make. scarcity, economics, need, want, factors of production, land, capital, financial capital, labor, entrepreneur, production, Gross Domestic Product GDP After studying this section, you will be able to 1. Explain the...
Kenneth I Chenault
What does it take to succeed at one of America's largest and most prestigious corporations Kenneth Chenault knows the answer. At the young age of 45, Chenault became president and chief operating officer COO of American Express, the sixty-fifth largest company in the country. Chenault is the first African American to serve as president of a top-100 company. Some people have compared him to Jackie Robinson, who broke the color barrier in baseball in 1947. Coincidentally-and perhaps...
Chapter 2 Assessment and Activities 1
4. Making Comparisons Reproduce the following diagram on a separate sheet of paper. Then, in the spaces indicated, identify several elements of command and tradition in the U.S. economy that make it a mixed, or modified private enterprise, economy. 1. Tradition Most people tip for service in restaurants, but not for service at clothing stores or gas stations. Explain how this illustrates economic behavior by tradition rather than by market or command. 2. Freedom and Equity Explain the role you...
Chapter 2 Assessment and Activities
Self-Check Quiz Visit the Economics Principles and Practices Web site at epp.glencoe.com and click on Chapter 2 Self-Check Quizzes to prepare Self-Check Quiz Visit the Economics Principles and Practices Web site at epp.glencoe.com and click on Chapter 2 Self-Check Quizzes to prepare On a separate sheet of paper, write the letter of the key term that best matches each statement below. a. capitalism f. inflation b. command economy g. private property rights c. consumer sovereignty h. profit...
Economic Choices and Decision Making
Trade-offs are present whenever choices are made. Reading Strategy Graphic Organizer As you read this section, complete a graphic organizer similar to the one below by explaining what you need to know to become a good decision maker. trade-off, opportunity cost, production possibilities frontier, cost-benefit analysis, free enterprise economy, standard of living After studying this section, you will be able to 1. Analyze trade-offs and opportunity costs. 2. Explain decision-making strategies....
Economic Systems
An economic system is a set of rules that governs what goods and services to produce, how to produce them, and for whom they are produced. Graphic Organizer As you read the section, complete a graphic organizer like the one below to identify ways in which a market economy differs from, and is similar to, a command economy. economy, economic system, traditional economy, command economy, market economy After studying this section, you will be able to 1. Describe the characteristics of the...
Alice Rivlin
Alice Rivlin, founding director of the Congressional Budget Office CBO , former Director of the Office of Management and Budget OMB in the Clinton administration, and former Vice Chair of the Fed's Board of Governors, is one of the most respected economists in Washington. As a seasoned professional with a wealth of experience, her knowledge of government finance is virtually unparalleled. She has written extensively and is known for the straightforward- sometimes searing-views put forth in her...
Jesses DecisionMaking Grid
Adapted from A Framework for Teaching Basic Economics, Economics America National Council on Economic Education, 1996 Adapted from A Framework for Teaching Basic Economics, Economics America National Council on Economic Education, 1996 Using Tables A decision-making grid is a good way to list and then evaluate alternatives when a decision must be made. What do economists mean when they talk about costs 20 UNIT 1 FUNDAMENTAL ECONOMIC CONCEPTS Trade-Offs In this cartoon, the king faces a...
Capitalism and Economic Freedom
Under capitalism, the basic economic decisions are made through the free interaction of individuals looking out for their own best interests. Graphic Organizer As you read the section, complete a graphic organizer like the one below to identify the five characteristics of a free enterprise economy. Then provide an example of each. capitalism, free enterprise, voluntary exchange, private property rights, profit, profit motive, competition, consumer sovereignty, mixed economy, modified private...
Chapter 1 Assessment and Activities 1
2. Understanding Cause and Effect Copy the two diagrams of the production possibilities frontiers shown below. Then, write captions that explain what each diagram is showing. 1. Scarcity What three choices must a society make because of scarcity 2. Utility How is a product's utility related to its value 3. Cost-Benefit Analysis How would you apply the concept of cost-benefit analysis to the decision to finish high school To further your education A city administrator with a 100,000 annual...