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Chapter_2_ppt
Chapter_2_ppt

...  In a command economy, the government owns or manages the nation’s resources and businesses.  In a market economy, suppliers produce whatever goods and services they wish and set prices based on what consumers are willing to pay.  In a free enterprise system, individuals or businesses operate wit ...
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... Since AE does not cross the 45 degree reference line at Yfe = 100 we know Yfe = 100 cannot be an equilibrium for this economy given the information. At Yfe = 100, AE is less than production: that is, spending is less than production. If producers produce Yfe = 100 then unplanned inventories will inc ...
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Non-monetary economy

The non-monetary economy represents work such as household labor, care giving and civic activity that does not have a monetary value but remains a vitally important part of the economy. With respect to the current economic situation labor that results in monetary compensation becomes more highly valued than unpaid labor. Yet nearly half of American productive work goes on outside of the market economy and is not represented in production measures such as the GDP (Gross Domestic Product).The non-monetary economy seeks to reward and value work that benefits society (whether through producing services, products, or making investments) that the monetary economy does not recognize. An economic as well as a social imperative drives the work done in this economy. This method of valuing work would challenge ways in which unemployment and the labor force are all currently measured and generally restructure the way in which labor and work are constructed in America.The non-monetary economy also works to make the labor market more inclusive by valuing previously ignored forms of work. Some acknowledge the non-monetary economy as having a moral or socially conscious philosophy that attempts to end social exclusion by including poor and unemployed individuals economic opportunities and access to services and goods. Such community-based and grassroots movements encourage the community to be more participatory, thus providing a more democratic economic structures.Much of non-monetary work is categorized as either civic work or housework. These two types of work are critical to the operation of daily life and are largely taken for granted and undervalued. Both of these categories encompass many different types of work and are discussed below.It is important to point the microscope on these two areas because only certain people are very civically engaged and very frequently a certain group of people tend to do housework. Non-monetary economic systems hope to make community members more active, thus more democratic with more balanced representation, and to value housework that is commonly done by women and less valued.
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