"Economy" means the total resources of a community or country. Therefore, economy compasses many things, such a money, the wealth of citizens, and the amount of commodities or products available for consumption. Although there are many ways of measuring the economy, the GDP, or gross domestic product, provides one of the best general overviews of the U.S. economy. The GDP measures the total output produced by people and businesses.Continue Reading
There are four types of economic systems: traditional, market, command and mixed. In a traditional economy, the economic system remains the same from generation to generation. On the other hand, a market economy is constantly changing. A market economy relies on the demand for products and adjusts according to purchasing trends. In turn, the price of products is determined by supply and demand.
In a command economy, the government controls economic activity, and the market trends are only reactive to the decisions of the government. A mixed economy involves some government control, but economic activity is also influenced by purchasing trends.
The U.S. has a mixed economy. The government regulates several different industries, but purchasing trends also play a central role in economic activity. Most industrialized countries also have a mixed economy.Learn more about Economics
Experts disagree on the net effect of shopping online, but people who buy products online send money out of the community instead of keeping it within the community. As a result, local businesses don't bring in as much money and may not be able to hire as many employees.Full Answer >
In the investment community, the primary market refers to the market where securities are created, while the secondary market is the stock market where investors trade securities that they already own. While these terms sound similar, they refer to two very different things.Full Answer >
To calculate the real gross domestic product, or GDP, per capita, which reflects the total output of the country, the gross domestic product should be divided by the population of the country. GDP can be calculated for any size of population, but it is often used for populations of countries.Full Answer >
Economic stability is a common term used to describe the financial system of a country that shows a consistently low rate of inflation and minor variations in the output growth. It is normally believed to be a desirable condition for any developed state, and the central bank is often seen encouraging the process through various plans, policies and actions.Full Answer >