Civics Core 100, Civics Core 100, Goal 9Goal 9

Goal 9: The learner will Goal 9: The learner will analyze factors influencing analyze factors influencing the United States economy. the United States economy.

People and People and nationsnations all over the all over the world now depend on one another world now depend on one another for many for many goodsgoods and services and services

TRADETRADE

The economy grows over time The economy grows over time through alternating intervals of through alternating intervals of growthgrowth and and declinedecline called the called the business cyclebusiness cycle

EnvironmentalEnvironmental Protection (EPA) Protection (EPA) CitizensCitizens’’ safety (OSHA- workplace safety (OSHA- workplace

protection, CPSC- consumer protection, CPSC- consumer protection)protection)

Affirmative ActionAffirmative Action LaborLabor disputes disputes DeregulationDeregulation

Facts, data, etc. that show the present Facts, data, etc. that show the present and/or future health of the economyand/or future health of the economy

GDP-GDP- total value of all final goods and total value of all final goods and services produced in an economyservices produced in an economy

Per CapitaPer Capita GDP- calculates number of GDP- calculates number of goods produced per person; divide GDP by goods produced per person; divide GDP by populationpopulation

Standard of Living-Standard of Living- level of economic level of economic prosperity at which people liveprosperity at which people live

Consumer Consumer PricePrice Index- measures monthly Index- measures monthly changes in costs of goods and services changes in costs of goods and services typically purchased by typically purchased by consumersconsumers

Stock Market- Stock Market- bullbull market= rising, market= rising, bearbear market= fallingmarket= falling

MovementMovement of people from one location of people from one location in a country to anotherin a country to another

People are leaving the People are leaving the Rust BeltRust Belt and the and the Frost Belt to move to the Frost Belt to move to the Sun BeltSun Belt states states

Silicon ValleySilicon Valley in California is the hub of in California is the hub of the US computer industrythe US computer industry

Research Triangle ParkResearch Triangle Park in NC is a in NC is a prominent high tech research and prominent high tech research and development centerdevelopment center

European UnionEuropean Union (EU): (EU): org of org of independent European nationsindependent European nations

North American Free Trade North American Free Trade AgreementAgreement (NAFTA): (NAFTA): will eventually will eventually eliminate all barriers to trade among eliminate all barriers to trade among US, Canada, and MexicoUS, Canada, and Mexico

World Trade OrganizationWorld Trade Organization (WTO): (WTO): oversees trade among all nationsoversees trade among all nations

Free TradeFree Trade: reduced barriers on trade: reduced barriers on trade To increase trade, countries join together To increase trade, countries join together

with a few key trading partners to set up with a few key trading partners to set up zones of free tradezones of free trade

ProtectionismProtectionism: tariffs placed on : tariffs placed on imports; price of foreign goods goes up imports; price of foreign goods goes up and makes local prices more and makes local prices more competitivecompetitive to protect domestic productsto protect domestic products Can lead to trade wars: set up even Can lead to trade wars: set up even

greater trade barriersgreater trade barriers

FiscalFiscal Policy (Taxing and Spending) Policy (Taxing and Spending) DecreaseDecrease taxes= more disposable taxes= more disposable

income, economic growthincome, economic growth IncreaseIncrease taxes= slows economy, taxes= slows economy,

can be used to curb inflationcan be used to curb inflation ProgressiveProgressive Taxes, Regressive Taxes, Regressive

Taxes, Proportional Taxes, Taxes, Proportional Taxes, IncomeIncome Taxes, Excise Taxes, Taxes, Excise Taxes, SalesSales Taxes, Taxes, etc.etc.

Changes in government Changes in government spendingspending or tax or tax policiespolicies

LongLong term economic goals term economic goals Important economic tool because of its Important economic tool because of its

ability to affect the total amount of output ability to affect the total amount of output produced (GDP) produced (GDP)

Controlling of the Controlling of the supplysupply of money and of money and the cost of the cost of borrowingborrowing money (credit) money (credit)

ShortShort term economic goals term economic goals The The Federal ReserveFederal Reserve System can increase System can increase

or decrease the supply of moneyor decrease the supply of money