Chapter 7 Flashcards
Consumerism
The relationship between individuals and the economic system
Acquiring material goods and financial wealth - need to build future holdings - sustainability
Industrialization
During the 1800s - increased participation of US families in the economic system
Goods and services developed due to:
Telegraph (improved communication)
Telephone lines
Mechanical and electrical interventions (power driven machinery, switch to hand tools, the use of machinery, and the adoption of the factory system)
Mass production
Economy in 1929
Stock market crashed
Great Depression
End of WW2
The gov. Spent more money on rebuilding the economy
Passage of the employment act: the use of congress manipulating the tax system to gain more revenue
Consumerism (current day)
Attempts to raise the failing economy
- the US recession of 2008 (the American recovery and reinvestment act was increased the unemployment insurance and lowered interest rates four banks)
- the global recession due to the Covid-19 pandemic (grants and loans to businesses so they could survive event though the gov. Had very little strategy to reduce the impact; stimulus checks)
Economics
Is the study of how resources are expended to fulfill the needs and wants of individuals, families and social groups.
Money:
Anything that can be used for exchange (goods and services)
Currency (medium of exchange)
Measurement of currency value (a dollar to a peso)
Barter (you might not have money but what can you trade for)
Economic principles part 1
Inflation
Cost of living adjustments (COLAS) (impact a persons salary; annually)
Low interests boosts spending (the housing market)
Economic principles part 2
Income Fluctuations (SES classes)
Expenditure showing income differences.
Gambling: more in low-income groups.
Tobacco: more in middle-income groups.
Spending habits of self-made millionaires. (More simplistic life, drive used cars, coupons, middle class housing, etc. average of 7% to philanthropy)
Economic principles part 3
Income Fluctuations
Various reasons of income change. (Financial situation)
Categories that reveal family expenditures. (Housing, utilities, food, etc)
Social implications of food. (Cost of food from organic to conventional)
Income spent of food. (Supplemental programs)
Monetary function
Medium of exchange (bartering system) - A store of value (value of a dollar versus a peso) - unit of account (liquid of assets: equally transferable to money)
Essential to production and consumption
Time (the time used to create the item), skill (the person that goes out and teaches others to use it), energy, and knowledge (ability to create the item)
Decision making process with pricing
Adjustments to increasing costs:
Accommodate
Substitute
Find savings
Switch vendors
Use coupons or rebates
Buying behavior
Taste ( brand names, feels, smells )
Fashion ( social membership, make, etc. )
Innovation ( new and replacements )
Unemployment categories
Frictional (leave another job; temporary; voluntary)
Cyclical (involuntary; seasonal jobs)
Structural (involuntary; loss in demand)
Roles of women in the labor force
Glass ceiling effect - women and minorities where you can see through the glass but you can’t get over it
19th century - support in the home/team player
Civil war/world war 2 - few worked outside the home
1940s - men joined the army/ women in production and management positions
1950s - women returned home
1950s to 2001 - more women in the labor force in large numbers
20th century - 47% women in the labor force/7 out of 10 mothers are employed
Opportunity cost
Impacts loss of advancement, job skills and investment in the home and children
Decision making factors/Cost benefit analysis:
Quality of childcare available
Participation of the father parenting and housekeeping
Personal & social values
Type of position
