Chapter 2 Final Wrap-up by Jaliah Miller

Capital investment

jsm2306_1 — 2024-11-11 16:14:59 UTC

Capital investment is when businesses or people put money into things that will help generate future income, including equipment, buildings, or technology. It’s about spending now to improve or grow in the future, aiming to increase productivity or efficiency. An example being, a bakery might buy new ovens to make more bread faster. These investments help businesses expand and can create more jobs, ultimately contributing to economic growth.

Infrastructure development

jsm2306_1 — 2024-11-11 16:14:59 UTC

Infrastructure development is the building or upgrading of essential systems . Examples are roads, bridges, and water supply. It’s about creating or improving the basic structures that help communities and economies function normally. Good infrastructure makes it easier for people and goods to move around, supports businesses, and improves everyday life.

Technology innovation

jsm2306_1 — 2024-11-11 16:14:59 UTC

Technology innovation is new or improved technologies that help businesses and economies grow. When companies use these new tools, they can produce more and offer better products or services. Online shopping and mobile payments have made it easier for businesses to reach customers and handle transactions. In conclusion, Technology innovation drives progress, helping economies expand and improving people’s quality of life.

Comparing GDP

jsm2306_1 — 2024-11-11 16:14:59 UTC

The more good and services produced, the healthier the economy is deemed to be. The total monetary value of GDP as a measure of Economic growth does not tell the whole story. Another way to measure economic growth is GDP per capita. GDP per capita is calculated by dividing the GDP by the total population.

GDP Per Capita

jsm2306_1 — 2024-11-11 16:14:59 UTC

GDP per capita is a way to measure how much money a country's people, on average, make. It's calculated by dividing the country's total economic output (GDP) by its population. The higher the GDP per capita, the wealthier the average person is in that country. It gives an idea of living standards but doesn't consider things like income inequality or the cost of living.

Components of GDP

jsm2306_1 — 2024-11-11 16:14:59 UTC

Gross Domestic Product contains four major categories of economic action. This includes:

Consumer spending for clothing, food, shelter/housing, and other goods and services.
Business spending for equipment, inventory items, and buildings.
Government spending to pay employees and to buy other goods and services and to buy supplies.
The exports of a country less the imports into the country.

Sustainability

jsm2306_1 — 2024-11-11 16:14:59 UTC

Sustainability concerns focus on using resources in a way that doesn’t harm the Earth. Many worries are that overuse of resources, pollution, and waste are damaging the planet and causing problems. These likely problems are climate change and loss of biodiversity. The goal is to find ways to live, work, and grow that protect natural resources and create a healthier, lasting balance with the environment.

Inequality

jsm2306_1 — 2024-11-11 16:14:59 UTC

Concerns about inequality focus on the increasing gap between people who have a lot of resources and those who have very little. People worry that this limits opportunities for those with fewer resources, making it harder for them to improve their livelihood. Confronting inequality is about creating fairer access to things like good jobs, education, and healthcare so everyone has a chance to succeed and have a better life.

Impact of automation and globalization

jsm2306_1 — 2024-11-11 16:14:59 UTC

Automation and globalization both shape future growth but come with mixed impacts. Automation, like robots and AI, makes work faster and cheaper, helping companies produce more with less work. This can lead to people losing their jobs in certain workplaces, though it also opens new opportunities in tech and engineering fields. Globalization connects economies worldwide, allowing goods and services, to flow across borders, which can boost trade. However, it can also lead to jobs moving to places with lower labor costs, affecting workers in some regions, while creating more access to global markets in others. Altogether, automation and globalization drive growth but require adapting to shifting job demands and economic structures.

Expansion

jsm2306_1 — 2024-11-11 16:14:59 UTC

Expansion is when the economy grows, and businesses start doing better. It means more people get jobs, wages usually increase, and people have more money to spend. During expansion, demand for goods and services rise. Also during this time, companies produce more to meet that demand. It's a good time for economic activity, but if it goes on for too long, it can lead to inflation.

Peak

jsm2306_1 — 2024-11-11 16:14:59 UTC

The peak of the business cycle is when the economy is at its best. Usually with the highest level of production and employment. It is when everything is running good, and demand for goods and services is at its highest/best. However, after this point, the economy can slow down, leading to a recession.

Recession

jsm2306_1 — 2024-11-11 16:14:59 UTC

A recession is a period when a country's economy slows down and has rising unemployment. Businesses cut back on spending. That causes a cycle of decreased production and layoffs/job losses. Recessions can happen for multiple reasons, including high inflation, interest rates, or unexpected events. They’re usually temporary, but can cause financial stress for many people.

Retail sales

jsm2306_1 — 2024-11-11 16:14:59 UTC

Retail sales are the sale of goods and services directly to consumers. They are an important part of the economy, often looking back on consumer spending habits and overall economic health. Retail sales can be in physical stores, online, or through other platforms like direct sales. These sales can vary by season and/or trends. In general, strong retail sales indicate a thriving economy, while weak sales may signal economic recession.

Flipped Classroom

jsm2306_1 — 2024-11-11 16:14:59 UTC

Personal Consumption Expenditure (PCE) is a measure of the goods and services people buy for personal uses. It's a sign of consumer spending, which takes up a large part of the economy. When PCE rises, it often means that people are spending more, which can be a sign of economic growth.

Household income

jsm2306_1 — 2024-11-11 16:14:59 UTC

Household income is the total money a household brings in, like salaries, wages, and other sources like investments. It shows how much people have to spend on things like bills, groceries, etc. Higher household income usually means more financial freedom, while lower income can make it harder to cover basic needs.

Trough

jsm2306_1 — 2024-11-12 03:01:48 UTC

A trough is the lowest point in an economic cycle, where the economy hits its weakest moment before starting to improve. It’s like a slump, where things are slow, and business activity and employment are at their lowest. After this point, the economy typically begins to recover, with spending, jobs, and growth picking up again.