This topic contains a solution. Click here to go to the answer

Author Question: Describe the purpose of the economy and provide examples of the related components of an economy. ... (Read 158 times)

newyorker26

  • Hero Member
  • *****
  • Posts: 536
Describe the purpose of the economy and provide examples of the related components of an economy.
 
  What will be an ideal response?

Question 2

Crowd behavior is irrational.
 
  a. True
 b. False
  Indicate whether the statement is true or false



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

jsm54321

  • Sr. Member
  • ****
  • Posts: 328
Answer to Question 1

The economy is the social institution that ensures the maintenance of society through
the production, distribution, and consumption of goods and services. Goods are
tangible objects that are necessary (such as food, clothing, and shelter) or desired
(such as DVDs and electric toothbrushes). Services are intangible activities for which
people are willing to pay (such as dry cleaning, a movie, or medical care). In highincome
nations today, many of the goods and services we consume are information
goods. Examples include databases and surveys and the mass media, computer
software, and the Internet. Some goods and services are produced by human labor
(for example, the plumber who unstops your sink); others are primarily produced by
capital (such as Internet access available through an Internet service provider). Labor
refers to the group of people who contribute their physical and intellectual services to
the production process in return for wages that they are paid by firms. Capital is
wealth (money or property) owned or used in business by a person or corporation.
Obviously money, or financial capital, is needed to invest in the physical capital (such
as machinery, equipment, buildings, warehouses, and factories) used in production.
For example, a person who owns a thousand shares of Dell Inc. stock owns financial
capital, but these shares also represent an ownership interest in Dell's physical capital.

Answer to Question 2

False





 

Did you know?

For about 100 years, scientists thought that peptic ulcers were caused by stress, spicy food, and alcohol. Later, researchers added stomach acid to the list of causes and began treating ulcers with antacids. Now it is known that peptic ulcers are predominantly caused by Helicobacter pylori, a spiral-shaped bacterium that normally exist in the stomach.

Did you know?

Since 1988, the CDC has reported a 99% reduction in bacterial meningitis caused by Haemophilus influenzae, due to the introduction of the vaccine against it.

Did you know?

More than one-third of adult Americans are obese. Diseases that kill the largest number of people annually, such as heart disease, cancer, diabetes, stroke, and hypertension, can be attributed to diet.

Did you know?

Approximately one in four people diagnosed with diabetes will develop foot problems. Of these, about one-third will require lower extremity amputation.

Did you know?

In inpatient settings, adverse drug events account for an estimated one in three of all hospital adverse events. They affect approximately 2 million hospital stays every year, and prolong hospital stays by between one and five days.

For a complete list of videos, visit our video library