American Private Enterprise System College of Agriculture, Food and Environment

Our Economy- How It Works, What It Provides Section II

Consumers Play an Important Role in Economy While members of all three groups—consumers, producers, and government—make decisions in our economic system, the key role that really makes everything work is played by you in your role as a consumer.

Our Economy, How It Works and What It Provides?? Consumers - Today, almost two-thirds of our nation’s total economic output consists of goods and services bought by individuals and households for personal us Supply and Demand Supply: The amount of some product which is available to customers Demand: Our willingness and ability to spend our money for certain goods and services (price, quality, and availability of goods and services) Credit and Savings Producers

How the Work Force Is Being Transformed Men and women in the workforce do far more than earn a livelihood. Both consumers and producers of goods and services are sources of both the supply and the demand that drive the nations commerce Nation Labor Force undergoing important changes Wages and salary Matching up jobs with qualified workers (Supply and demand) Labor surplus

Changing Workplace 36% of the labor force hold manufacturing jobs 65% Service occupants- largest share U.S. labor force growing rank of female workers

How Our Economy Fits Together “Gigantic Machine” Supply, Demand, Prices Affect the wages we are paid Cost of producing it and the selling price Profit Margin- buyers are willing to pay more for a product than it costs to produce it

Competition Key importance in the American economic system Competition between producers Competition causes our economy to change constantly

Productivity People- their skills, efforts, and motivations Capital resources- the availability and efficiency of factories and equipment Technology- the application of sciences to industrial needs, involving new materials, new methods, and advanced processes Organization- the effectiveness of management in combining resources Government regulation- the imposition of standards and restrictions Working environment- as it relates to both health and work attitudes

Balancing the Economy Law of supply and demand Determine levels of production and employment in our economy Production goes down unemployment rise Purchases increase, demand results in business expansion and higher employment Employment Act of 1946

Pay Day!!! Ready???!

Thank you! Want to thank you for participating in the American Private Enterprise Program and being a Future Leader in your Community!! We look forward to seeing you at the Kentucky Youth Seminar this summer…..