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U.S econ government.-
MIXED ECONOMY-
~The U.S economy is considered a mixed economy because we have a mixture of market and command economies.
-Part Market-
~Based on freedom of decision. (Buy/sell/pay what they want.)
~Relies on competition.
~Competition causes companies to make better products and sell them cheaper. (Better for us.)
-Part Command-
~Government regulations to fight against monopolies.
~Government gets involved by financing programs to help others with taxes.
gNp-
~OwNership
~Any finished product made by an American owned company.
Ex- Any coke sold in Japan counts towards Americas $.
gDp-
~Measure of all the finished products within the border of a country.
Ex- Toyota factories in America are accounted for in GDP of America but GNP for Japan.
Practice:
VW- Germany.
10 Million in Brazil,
Counts towards Germany's GNP
Counts towards Brazil's GDP.
THREE INGREDIENTS OF THE ECONOMY-
1~Natural resources: Need these to make finished products.
2~Labor/Work: The work that will turn the natural resources into finished products.
3~Entrepreneurship and Management: Makes sure the work is being done. Sees a need and tries to fill it.
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