Chapter 3 Economic Activity in a Changing World

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Chapter 3Economic Activity in a Changing World

• 3.1
• U.S. Economic History

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The Changing U.S. Economy

• 4 Major Economic Shifts
• 1600s Service-Based Economy
• 1700s Agricultural-Based Economy
• 1850s Industrial-Based Economy
• 1900s Information-Based Economy
• All of these economies still contribute to
  todays economy.

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Measuring Economic Activity

• Economic Indicators figures used to measure
  economic performance.
• How much a country is producing
• If the economy is growing
• How it compares to other economies
• Gross Domestic Product (GDP) the total value of
  goods and services produced in a country in a
  given year.
• To calculate GDP, economists find the sum of
  goods and services sold to businesses, consumers,
  the government, and other countries.

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Standard of Living

• Standard of Living the level of material comfort
  as measured by the goods and services that are
  available.
• The more goods and services produced per person,
  the higher the standard of living.
• The U.S. has a high standard of living mostly
  because of its productive workforce.

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Unemployment Rate

• Unemployment Rate measures the number of people
  who are able and willing to work but cannot find
  work during a given period.
• Factored in? Yes or No
• Stay-at-home mother
• Laid-off factory worker looking for a new job.
• High school student

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Rate of Inflation

• Inflation a general increase in the price of
  goods and services.
• Goods and services cost more over time.
• Deflation a general decrease in the price of
  goods and services.
• Goods and services cost less over time.

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National Debt

• Government income comes mostly from taxed.
• Governments spends tax money for things such as
  defense, education ,and social security.
• Budget Deficit when the government spends more
  money on programs than it collects in taxes.
• National Debt the total amount of money a
  government owes.
• Budget Surplus when the government spends less
  money on programs than it collects in taxes.

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Homework

• Ch. 3 Definitions-Packet (Save to SDrive)
• Chapter 3-1 Reading Activity and 3-1 Graphic
  Organizer (Save to SDrive)
• Review questions on page 42, 1-3