ADM 1100 Lecture Notes - Lecture 4: Market Basket, Deflation, Limit Set
11 Dec 2017
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Gov makes decisions: socialism, gov owns and operates major industries. Incentives only used in private firms: communism, worker rights are limited. Gdp: sum value of all goods and services produces within a country. Due to forces in economy cycle fluctuates. Ppl over buy and it goes up then ppl go into debt and it goes down. Unemployment low, consumer confidence/ purchasing high, businesses expanding. Recession a cycle of economic contraction that lasts 6+ months. Declining unemployment, increasing business activity, renewed consumer confidence. Core inflation rate: inflation rate after energy prices and good prices are removed. Deflation: opp of inflation, occurs when prices continue to fall (weak econ) Not working due to economic slow down. Not working due to no demand for skills. International economics exports: bigger markets to sell to, boost eco growth, more efficient production systems. Factors of production trading allows countries to get factors of production. Absolute advantage a country has monopoly over a companies production line.
