Chapter 3 Economic Activity in a Changing World

Chapter 3 Economic Activity in a Changing World 3. 1 U. S. Economic History

The Changing U. S. Economy n 4 Major Economic Shifts q q n 1600’s: Service-Based Economy 1700’s: Agricultural-Based Economy 1850’s: Industrial-Based Economy 1900’s: Information-Based Economy All of these economies still contribute to today’s economy.

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

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

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

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

National Debt n Government incomes mostly from taxed. q n n n 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.

Homework n n n Ch. 3 Definitions-Packet (Save to S: Drive) Chapter 3 -1 Reading Activity and 3 -1 Graphic Organizer (Save to S: Drive) Review questions on page 42, 1 -3