2.3 FOR WHOM ARE GOODS PRODUCED?
Profit (or loss)
Income earned by an entrepreneur for running a business.
Entrepreneurship
The human resource that organizes labor, land, and capital--entrepreneurs come up with ideas about what and how to produce, make business decisions, and bear the risks that arise from these decisions.
personal distribution of income
CHAPTER CHECKLIST
When you have completed your study of this chapter, you will be able to
1 Describe the patterns and changes in what goods and services are produced in the United States.
土地
land
劳动
labor
资本
capital
企业家才能 entrepreneurship
循环流量模型 Circular flow 实物流量
model
货币流量
Cash flow 要素市场
Real flow Factor market
产品市场
Goods
market
功能性收入分配
个人收入分配
Functional distribution of income
Factors of production are paid incomes:
Rent
Income paid for the use of land.
Wages
Income paid for the services of labor.
Interest
Income paid for the use of capital.
2.1 WHAT GOODS ARE PRODUCED?
Figure 2.1(a) shows what we consume.
Americans spend the largest share of their income on:
• Medical care • Housing • Transportation • Food • Recreation
Urban land is about 5 percent of the total and is increasing slightly.
2.2 HOW ARE GOODS PRODUCED?
Figure 2.4(b) shows the urban distribution.
A quarter lives in the six largest cities.
Human capital
The knowlededucation, on-the-job training, and work experience.
2.2 HOW ARE GOODS PRODUCED?
Figure 2.6 shows the U.S. labor force and how it has changed since 1980.
2.2 HOW ARE GOODS PRODUCED?
Capital
Tools, instruments, machines, buildings, and other constructions that have been produced in the past and that businesses now use to produce goods and services.
4 Use the circular flow model to provide a picture of how households, firms, and governments interact to determine what, how, and for whom goods and services are produced.
2.1 WHAT GOODS ARE PRODUCED?
What We Produce
Businesses located in the United States produce most of the goods and services that people in the United States buy.
2.1 WHAT GOODS ARE PRODUCED?
Figure 2.2 shows the largest five items of services produced.
And the largest five items of goods produced.
2.1 WHAT GOODS ARE PRODUCED?
2 Describe the patterns and changes in how goods and services are produced in the United States.
3 Describe for whom goods and services are produced in the United States.
Almost a third live in the ten largest cities.
More than a half lives in cities that exceed 1 million.
2.2 HOW ARE GOODS PRODUCED?
Figure 2.5 shows how long the known reserves of nonrenewable energy resources will last at the current growth rates of use.
2.2 HOW ARE GOODS PRODUCED?
Land The “gifts of nature” that we use to produce goods and services. All the things we call natural resources. Labor Work time and work effort that people devote to producing goods and services
Factors of production
The productive resources used to produce goods and services. Factors of production are grouped into four categories:
• Land • Labor • Capital • Entrepreneurship
2.1 WHAT GOODS ARE PRODUCED?
What We Consume
People buy millions of different goods and services. We can describe what people buy and consume only if we classify goods and services in large groups. Let’s look at the items that people spend most on.
New reserves are constantly being discovered.
2.2 HOW ARE GOODS PRODUCED?
Labor
The quantity of labor depends on the size of the working age population and the number of people in that age group that decides to take a job. The quality of labor depends on human capital.
2.2 HOW ARE GOODS PRODUCED?
Land
Figure 2.4(a) shows that almost 50 percent of the land in the United States forest, parks, and water.
Agricultural land is about 47 percent of the total and is decreasing slightly.
What We Buy from the Rest of the World
Figure 2.3 shows the five largest items that we buy and import from the rest of the world.
2.2 HOW ARE GOODS PRODUCED?
Businesses in the rest of the world produce goods and services that the United States imports.
The largest part of what we produce today is services, not goods.
2.1 WHAT GOODS ARE PRODUCED?
Figure 2.1(b) shows that Americans spend:
• A falling share of total expenditure on food and other necessities.