How did 911 affect consumers

1
How did 9/11 affect consumers?

• Higher gas prices
• Higher airline tickets
• More difficult to buy weapons
• Inconvenience at airports
• More and better inspections
• Airline problems
• International travel more difficult
• More patriotic
• Stock market

2
Market System

• Unit 2

3
Economic Systems

• Nations way to provide for its peoples wants
  and needs
• Must answer these 4 questions
• What and how much should be produced?
• How should we produce?
• Who should produce it?
• Who should share what we produce?

4
Economic Systems

• 5 Basic types
• Traditional old fashioned way
• Command or controlled government makes all
  economic decisions
• Market individuals are in charge of production
• Mixed combo of command and market
• Developing economy which is not yet
  industrialized

5
Resources

• Land also includes natural resources
• Labor work force
• Capital property that people use to produce
  good
• Entrepreneurship ability to start new
  businesses
• Technology use of all resources to
  produce goods more efficiently

6
Other variables affecting our economic system

• Supply and demand
• When supply is greater than demand, prices fall.
• When demand is greater than supply, prices rise
• Demand quality
• Competition

7
Ups and Downs

• Recession economy not growing
• Inflation prices rising sharply (decline in
  purchasing power)

8
Measuring the Economy

• Gross Domestic Product (GDP)
• Real GDP
• Consumer Price Index (CPI)
• Interest rates (Ten-Year Treasury)
• Balance of trade (imports/exports)
• Unemployment (cyclical, frictional, structural)
• Distribution redistribution of income
• Deflation