Ch 3


Oct 28, 2013 (3 years and 7 months ago)




Profit motive

Open opportunity

Legal equality

Private Property rights

Free Contract

Voluntary Exchange


Role of Consumer

To purchase products

To form interests groups if necessary

Role Of Government

Carry out

Constitutional Responsibilities

Public disclosure laws requiring companies to give out
important information about their product

Negatives of Government Regulation

Highly regulated industries cause the cost of the
product to rise due to extra measures that the
manufacturer must adhere to.


Phone Companies


Also, regulations can cause less competition in a certain
areas of business


Study of the behavior and decision making of the
entire spectrum of Economics


Study of small units( individuals, families, businesses)
of the economic spectrum

Gross Domestic Product( GDP)

The total value of all final goods and services
produced in a nations economy.

Economists follow the country’s GDP and other
stats to determine the country’s Business Cycle.

A period of macroeconomics expansion
followed by a period of contraction or
decline. These are major fluctuations

no day
to day fluctuations like the stock market.
These are changes that span a larger amount
of time.

Real gross domestic product

the output of
goods and services produced by labor and
property located in the United States

increased at an annual rate of 3.2 percent in
the fourth quarter of 2010, (that is, from the
third quarter to the fourth quarter),
according to the "advance" estimate released
by the Bureau of Economic Analysis. In the
third quarter, real GDP increased 2.6

The increase in real GDP in the fourth
quarter primarily reflected positive
contributions from personal consumption
expenditures (PCE), exports, and
nonresidential fixed investment that were
partly offset by a negative contribution from
private inventory investment. Imports, which
are a subtraction in the calculation of GDP,

Final sales of computers added 0.31
percentage point to the fourth
change in real GDP after adding 0.29
percentage point to the third
change. Motor vehicle output subtracted 0.34
percentage point from the fourth
change in real GDP after adding 0.49
percentage point to the third

Economic Stability is a task to be dealt with
in Macroeconomic. Our Government must
deal with the issue of jobs. Jobs for citizens
give economic stability to
the country.