Producers and Consumers EOCT Prep Producers and Consumers

Producers and Consumers Investment Composition (make-up) of the workplace Productivity Personal Financial Decision Making

Investment Businesses invest to increase productivity. (Examples are investments in capital goods, human capital, investing by saving) Consumers invest for their own personal benefit. (Examples are investments in education, job skills, and training, investments in stocks and bonds, and saving money.

Composition of the Workplace As more women enter the work force, problems surface. Income Gap – Caused by gravitation towards lower income jobs and interruptions in occupations due to children. Discrimination and the glass-ceiling (invisible barrier that hinders advancement) Laws have been passed to prevent discrimination (Equal Pay Act of 1963, Civil Rights Act of 1964) Comparable Worth – Different work, but equally demanding should receive the same pay.

Productivity Defined as the relationship between inputs and outputs. Goal is to increase productivity through specialization, producing more with the same inputs, or producing the same with fewer inputs, savings, investment in capital goods, and investment in human capital. Leads to economic growth and higher standards of living.

Personal Financial Decision Making Choosing a financial institution – How would you? Saving Money – absence of spending Credit and Loans – Two ways consumers borrow. Interest Rates – The amount you pay to borrow someone else’s money.