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Understanding business 8th by mcchugh nickels chapter 02

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The Creation and Distribution... • Study of how society chooses to employ resources to produce goods & services and distribute them among competing groups/individuals • Micro v... $ W

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The Creation and Distribution

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Study of how society chooses to

employ resources to produce

goods & services and distribute

them among competing

groups/individuals

Micro v Macro

Resource Development

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$ What is the method of output

distribution?

$ What is the rate of economic

growth?

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S

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D

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Perfect Competition

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Buyer Sellers

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*

Monopolistic Competition:

Many Sellers With

Many Sellers With Perceived Perceived Differences

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Inequality of Wealth- Causes

National & World Tension

Greed Compromises Ethics

Limitations Push Country

towards Socialism =

Government Regulation

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Private & Public Ownership

Creates Social Equality

Reduces Individual Incentive

- Brain Drain

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Price Indexes

Consumer Price Index (CPI)

Producer Price Index (PPI)

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*

U.S Gross Domestic Product

In Billions of U.S $

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*

1982-84 = 100

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*

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Pension & Health care costs

The Federal Deficit

High Energy and Commodity Costs

Balance of payments

Terrorism

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* Rising U.S Trade Deficit

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National Debt Clock- http://

What is the National Debt?

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