Daniela Dominguez

5 Stages of Material Economy

1. Corporation is bigger than the goverment.

2. Extraction = Damage to the planet/Running out of resources.

3. The most affected are the babies, since the toxics that the mother's receive go directly to the milk and babies get feeded by it.

4. US releases 4,000,000,000 lbs of pollution a year!

5.Externalization of true cost of production.

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5 Things to Learn from the Debt Calculator

1. National Assets, household assets, corporation assets, small business assets increase but assets per person remain the same.

2.The national debt highly increases (and is already huge) while the family savings STAY THE SAME!!... wth...

3. From the US population, only about a third part are tax payers.

4.Meanwhile, the debt per person would be about $53,302, for the actual tax payers would be about the triple.

5. People keep jus adding debts to themselves by the mortgage, student lonas AND credit card debts, but DO NOT increase their savings.

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6 Pillars of Free Enterprise

1. The freedom to be able to own something is the right of private property.

2. Be able to focus on producing a part from a whole.

3. The ability to trade to get everything that you want and need.

4. Money as a system for exchange

5. Competition (due to the private property) of companies that sell and provide products and services.

6. Entrepreneurhipship. What motivates the companies to act, compete and improve their products (or services).

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4 Stages of Circular Flow

1. Household provides the firm with capital, land, labor and entrepreneurhipship.

2. The firm provides the household by paying the rent, the land, the wages and its profit (because the household owns the firm)

3. The firm produces food and provides it, plus shelter to the household.

4. In exchange of the food & the shelter the household pays the firm.

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2 Types of Price Elasticity

Demand. Measures how much comsumers respond to their buying decisions to a change in price.

1. Inelastic - When the consumers do not react negatively (stop buying) despite the raise of price.

2. Elastic - When consumers stop buying due the increase of a product's price.

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4 Major Types of Business

1. Sole propiertorship.

2. Partnership.

3. Limited liability company.

4. Corporation.

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6 Categories for Inflation

1. Coverage

2. Time of ocurrance.

3. Goverment reaction.

4. Rising prices.

5. Causes: deficit, credit, scarcity, etc...

6. Expectation.

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2 Types of Federal Financial Policy

1. Fiscal policy - Country wise as political issues. As the public service and representation of the country's economy.

2. Monetary policy - Private issues that regulate private properties and corps., which is also just watched over by the goverment.

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Changes in International Economics

+ International market (globalization): Trading of goods & services in long distance relationships.

+ Increase of monopoly and private property.

+ Increase of technology, and therefore of consumption of toxic materials.

+ With the globalization, transportation increases so the consumption of oil based energy fuels increase. This cause an inflation of the price in the 20th century.

+ Political issues influence in the product and resource trading and may lead to inflation of the prices.

+ Overall the development of technology has influence on the market by making it easier to consume, but this is benefitting just some companies which are the ones that monopolize the market. The rest are followers of the consumist culture that create a dependence of "having more and more" which leads to damage the environment (by increased waste) and increases the debt.

Where is the limit and when will we reach it?

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