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How Do Your Financial Choices Impact The Economy

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1. What is a barter system?
Barter systems are those that feature direct exchange of goods without the use of money or another medium of exchange. They allow individuals to trade goods they don’t need or want in exchange for goods they want/need. It is hard for small isolated communities to barter.
2. What is the principle of supply and demand?
The principle of supply and demand is prices for goods and services are determined by the supply of a good/service and the demand for the good/service. When supply is high and demand is low prices lower. When supply is low and demand is high then prices go up.
3. What are tariffs? How do they impact the economy?
Tariffs are taxes that are levied on imports and/or exports. They can affect the amount of …show more content…

How do your financial choices impact the economy? Trace the impact of your financial decisions. People that have jobs produce goods for the economy and then receive paychecks. They take their paychecks and then buy goods and the money is put back in the economy.
2. What are some of the advantages and disadvantages to a market economy? Some advantages of a market economy are competition, economic freedom, and limited government influence. These things increase choice and provide more freedom to individuals and businesses. Some disadvantages are they tend to create extreme differences between the richest and poorest people, they use up natural resources without consideration of the future, and individuals can be exploited.
3. How do global factors influence the economy in your country? Global factors like trade allows countries to goods and services that they can’t get in their own country and export any excess of goods and services.
4. What are some of the ways in which the government is involved in the economy? What are the advantages and disadvantages of governmental involvement? Some disadvantages are they are slower to implement new technology and consumers may have less access to goods. Some advantages are there is rarely any overproduction and they are there to satisfy the

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How does the federal government regulate the economy for the benefit of the public? Discuss specific policies and programs, including their effects. The federal government has many programs and abilities to regulate the United States economy. On of which is the fiscal policy which allows government to raise and spend money.

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The tariffs are customs duties applied to imports of products with two fundamental purposes, on the one hand being a source of income for the State and on the other, to protect certain sectors of the economy when importing products that can compete with domestic production. In 1828, Congress approved the "tariff of abominations," a crushing and hard tariff that explicitly sacrificed one part of the country to another. Northern manufacturers were getting almost all the benefits of protection, while southern farmers were forced to pay higher prices for comparatively lower US products and lost their cotton export markets because of foreign retaliation against the United States. In 1832, Congress raised tariffs even more. South Carolina declared

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The economy is the collection of resources and money. Also all across the world, all countries that trade and use some sort of money. The economy includes tariffs, banking, trusts, railroads and all about the new transportation, and acts that expand the power of the federal government. Some issues with the economy that affected all people were railroad corruption, banking expansion, working conditions, trusts, and most of all, the corruption within the government. The changing economy positively impacted the common people.

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1. Explain why the following statement is false: “In the goods market, no buyer would be willing to pay more than the equilibrium price.” Thinking of the demand curve and the law of demand, “as the price increases, the quantity demanded decreases, and conversely, as the price decreases, the quantity demanded increases.” (OpenStax, 2016)

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Similarly, when there is scarcity of a product, prices rise to deter some people from purchasing the product. In a market such as

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The United States of America has a massive economy. Economy is “the system of trade and industry by which the wealth of a country or region is made and used.” “The Gross Domestic Product (GDP) in the United States was worth 17419 billion US dollars in 2014.” Even though the economy is very large, my personal economic habits have an effect on the economy of the United States. I have a great impact on the economy because I eat out almost every day.

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The law posits that as supply increases, while other things are kept constant, there is a decline in price and vice-versa. As demand increases, while other things are kept constant, the price tends to increase and when demand declines, the price declines. The economy achieves a state of equilibrium between quantity and price when there is a balance between demand and supply. The law of supply and demand has a big impact on the labor market and consequently, the economy. An increase in wages leads to a decline in supply of goods and services because labor is considered as a business cost.

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3. Supply creates its own demand. 4. Money only affects price and wage level. 5.

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Instead of capitalists or private sectors owning the factories of production, the government owns them. This in turn results in the government collecting the profit instead of just businesses taxes. Pros and Cons Proponents of both systems have continually argued which economic system is better. Both have their advantages and disadvantages. Capitalism makes sure that an economy will produce the best products and that these are priced reasonably.

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A tariff is a tax that is imposed on an imported good,

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Demand and supply determines what products are produced and sets the prices these products are sold. The idea is that if prices get too high, then demand is low and so the market corrects itself by lowering prices. Companies have individual say concerning what product or service to provide based on their costs. The government’s participation in the economy is entirely neutral, it does not protect industry from domestic or foreign market pressures nor does it have economic interests in industry or offer subsidies to businesses or R&D (Zuckerman,

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• Lower Government Acquisitions: Economic growth makes higher assessment incomes and there is less need to use funds on profits. For example, unemployment benefits. Subsequently, it serves to diminish obtaining. Likewise, it assumes a part in decreasing obligation to GDP degrees. DISADVANTAGES Long term financial development puts an awful effect on the inhabitants of any nation.

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