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The economy
- 1. The Economy By you know who
- 3. Vocabulary Consumer spending Exchange Rate Gross domestic product GDP per capita GNP Stock Market Interest Rate National Debt Rate of Inflation Unemployment Balance of Trade
- 4. Consumer spending Consumer spending or consumer demand or consumption is also known as personal consumption expenditure. It is the largest part of aggregate demand or effective demand at the macroeconomic level. There are two variants of consumption in the aggregate demand model, including induced consumption and autonomous consumption.
- 5. Exchange Rate Rate at which one currency may be converted into another. The exchange rate is used when simply converting one currency to another (such as for the purposes of travel to another country), or for engaging in speculation or trading in the foreign exchange market. There are a wide variety of factors which influence the exchange rate, such as interest rates, inflation, and the state of politics and the economy in each country.also called rate of exchange or foreign exchange rate or currency exchange rate.
- 6. Gross domestic product Gross domestic product (GDP) is the market value of all officially recognized final goods and services produced within a country in a given period of time. GDP per capita is often considered an indicator of a country's standard of living.
- 7. GNP Gross national product (GNP) is the market value of all the products and services produced in one year by labor and property supplied by the residents of a country. Unlike Gross Domestic Product (GDP), which defines production based on the geographical location of production, GNP allocates production based on ownership.
- 8. Stock Market A stock market or equity market is the aggregation of buyers and sellers (a loose network of economic transactions, not a physical facility or discrete entity) of stocks (shares); these are securities listed on a stock exchange as well as those only traded privately.
- 9. Interest Rate An interest rate is the rate at which interest is paid by a borrower (debtor) for the use of money that they borrow from a lender (creditor). Specifically, the interest rate (I/m) is a percent of principal (P) paid a certain amount of times (m) per period (usually quoted per annum).
- 10. National Debt Government debt (also known as public debt and national debt) is the debt owed by a central government. (In the U.S. and other federal states, "government debt" may also refer to the debt of a state or provincial government, municipal or local government.) By contrast, the annual "government deficit" refers to the difference between government receipts and spending in a single year, that is, the increase of debt over a particular year.
- 11. Rate of Inflation inflation is a persistent increase in the general price level of goods and services in an economy over a period of time. When the general price level rises, each unit of currency buys fewer goods and services. Consequently, inflation reflects a reduction in the purchasing power per unit of money – a loss of real value in the medium of exchange and unit of account within the economy. A chief measure of price inflation is the inflation rate, the annualized percentage change in a general price index (normally the consumer price index) over time.
- 12. Unemployment Unemployment (or joblessness) occurs when people are without work and actively seeking work. The unemployment rate is a measure of the prevalence of unemployment and it is calculated as a percentage by dividing the number of unemployed individuals by all individuals currently in the labor force. During periods of recession, an economy usually experiences a relatively high unemployment rate.
- 13. Balance of Trade The commercial balance or net exports (sometimes symbolized as NX), is the difference between the monetary value of exports and imports of output in an economy over a certain period, measured in the currency of that economy. It is the relationship between a nation's imports and exports. A positive balance is known as a trade surplus if it consists of exporting more than is imported; a negative balance is referred to as a trade deficit or, informally, a trade gap. The balance of trade is sometimes divided into a goods and a services balance.
- 14. GDP per capita Per capita is a Latin prepositional phrase: per (preposition, taking the accusative case, meaning "by, by means of") and capita (accusative plural of the noun caput, "head"). The phrase thus means "by heads" or "for each head", i.e. per individual/person.
- 15. Etymology Eco is a derivation of the Greek oikos, meaning an extended family unit that consists of the house, members of the family, slaves, farmland, and all property. The suffix –nomy is derived from the Greek nomos, meaning management, law, or principle. Thus oikonomos, the original form of economics, meant the management of the hearth and home.
- 16. How It Works Primary stage/degree of the economy: Involves the extraction and production of raw materials, such as corn, coal, wood and iron. Secondary stage/degree of the economy: Involves the transformation of raw or intermediate materials into goods e.g. manufacturing steel into cars, or textiles into clothing. Tertiary stage/degree of the economy: Involves the provision of services to consumers and businesses, such as babysitting, cinema and banking. Quaternary stage/degree of the economy: Involves the research and development needed to produce products from natural resources and their subsequent byproducts.
- 17. How it Works The gross domestic product (GDP) analyzes the total production of goods and services within a year. Although the GDP calculations assist in the measurement of the status of the economy, the GDP does not, however, determine every areas of a nation's well being. GDP only shows the value of the goods and services that an economy produces; however, it does not determine the quality of life for a nation due to the fact that some variables can not be measured by a GDP such as security, good health, personal happiness and a clean environment. In America, it is believed that supply and demand establishes the prices of goods and services. The prices set decide what products are produced. If people want and demand more of a particular good or service than the economy produces, the price of the good or service is increased. Companies begin to produce more goods because they see that prices are rising. When goods are not in great demand by consumers and less competition is present among producers, prices of goods drop and manufacturers, during this time, either go out of business or begin to produce other goods.
- 18. History
- 19. Time periods • Prehistory • Classical Era • Medieval Era • Renaissance Era • Enlightment Era • Industrial Era • Modern(WWII) Era • Information Era
- 20. Prehistory (Stone Age, Iron Age Bronze Age) Paleolithic 500,00010,000 BC Mesolithic 10,000-5,000 Neolithic 5,000-3,300 Bronze 3,300-1,300 Iron Ages 1,300-700
- 21. Paleolithic • Socio-economic unit was the band (small kin group) • Trading tools, foods, skins and other commodities, and for the exchange of mates. • Economic resources were constrained by typical ecosystem factors: density and replacement rates of edible flora and fauna, competition from other consumers (organisms) and climate • Humans both dispersed and adapted (Developed their technologies and behaviors) to increase productivity to a greater variety of environments. • Population to between 1 and 15 million.
- 22. Mesolithic • Domestication of plants and animals • Formation of settled communities
- 23. Neolithic Specializations of skill. • Exchange and trade became necessary. • Money=cattle (according to R.Davies). • Commodity money. • Tradition Economy • Top-down command Economy • Community cooperation Economy. •
- 24. Bronze Age • Bronze • export raw materials and the finished products • agriculture, trade and artisanship • Cultivation of cereals, legumes, vines and olives combined with the development of marine trade
- 25. Iron Age • industrial activities • Trade using silver and gold coins. • Iron becomes the working metal instead of bronze. • Pottery and decoration items. • Palace economy.
- 26. Classical • Palace economy • Trade in the Mediterranean sea. • Roman Economy
- 28. Early • Taxation decreased • Invations destroyed the Roman economy • Trade decreased increadibly • Gold and silver coinage. • Feudalism
- 29. High Population increased Feudalism Trade unions Found Silk Road Crusades Italian merchants got riches.
- 30. Late • Famine • Black Death • Economic hardships • Rebuild of nations • Protestant reformation • Trading and Looking for a new route into Asia
- 31. Renaissance • Trading • Comercializing everything • Arts funding. • Luxury resources mosty traded in Italy. • Guilds
- 32. Enlighment Era • Science progress made many new products and better productivity • Political condotions enable economic growth and trade. • Capitalism is born. • Roothschild Family is gaining power. • Book Industry • Mercantilism
- 33. Industrial • Economic expansion • Increasing urbanisation • Rising population • Improving communications • European Imperialism • Communism • Contamination • Women and children work.
- 34. WW2 • Manufacturing centers • Capitalism • Communism • Diversification of Jobs(new Industries) • Growth of city • Contamination of the atmosphere • Labor rights • High resource output • Mass consumption
- 35. Information Globalization information economy Computerized stock markets Wide spread debt Economic problems
- 36. Today´s economy is shaped by the tecnological advances of the past and key events. Our economy shapes us on our consumption patterns and our daily life.
- 38. Youtube Videos