Three Economic Stancees

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1. What are the three economic stances that a government may have? Describe each of these stances. Neutral: a neutral stance indicates a balanced economy. In most cases, this stance leads to more tax revenue for the government. Expansionary: this stance implies that the government is spending or allocating more money than it collects. Contractionary: this stance implies that the government is collecting more money than it spends or allocates. 2. What are the four different types of economic resources? Describe each type. Land: refers to the natural resources that we use, including lumber, minerals, oil, and so on. Capital: refers to all the manufactured tools and acids used to produce consumer goods. Capital includes the tools, machinery, …show more content…

What is a stock market? What is an example of a stock market? The stock market is simply a place where stocks or shares in a company are bought and sold. An example of a stock market is the New York Stock Exchange. 4. What is an open outcry? An open outcry is a sort of auction for stocks in which traders verbally submit their offers. 5. What is trading? Describe some of the ways that trading takes place. The trading of stocks occurs in different ways. Some stock markets have physical locations, such as the New York Stock Exchange. In these physical stock markets, the buying and selling of stocks often happens on the trading floor in what is known as open outcry. The other type of stock trading occurs through a virtual network of computers. In this type of trading, trades are made electronically rather than in person or through an open outcry. Critical Thinking Questions: 1. Choose one current event. Describe the event and discuss the economic implications of this event. What economic effects might this have at the individual and societal levels? The Great Recession was a resulting loss of wealth that led to sharp cutbacks in consumer spending. This loss of consumption, combined with the financial market chaos led to a collapse in business investment. Massive job loss followed as consumer spending and business investment dried

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