US Economy lesson.pptVIP

American Economy Idiom of the Day “Feel like a million dollars” Definition: To feel really great or wonderful Example: Roy: Hi Jessica, I know that last time I saw you, you had broken your leg. How do you feel now? Jessica: Oh! Everything has healed perfectly and now I feel like a million dollars! Roy: That’s great to hear! Idiom Review Play it by ear Drives me up a wall Bend over backwards Hit the sack Feel like a million dollars Economic Statistics Currency: United States Dollar (USD) Gross Domestic Product (GDP): $14.266 trillion (2009) GDP growth: -2.4% (2009) Major Economic sectors: Services (76.9%), Industry (21.9%), Agriculture (1.2%) Labor force: 154.5 million people (2009) Unemployment rate: 9.6% (August 2010) Main Industries Petroleum Steel Motor Vehicles Aerospace Telecommunications Chemicals Creative industries Electronics Food processing Consumer goods Lumber mining Free Market Economy Also called Capitalism Very little regulation and intervention from the government Opposite of controlled market – state controls how goods, services and labor may be used, priced, or distributed. The United States is a Free Market with a small amount of government control: Individuals own 85% of the economy Government controls only 15% Supply and Demand The products and the price of products will change based on supply and demand. Supply and demand: “Consumers” (people who buy) will demand a product “Suppliers” (people who sell) will make that product available Suppliers try to find a product that the consumers want and that no other company has. They will try to sell that product for a lot of money to make a profit. Eventually, if the consumers are buying that product, other suppliers will start to sell that product also. This creates competition in the economic market. Next, other suppliers will try to sell that product at a less expensive price so that the consumers will buy the product from them, and not from any other supplier. Eventually, the price will come do