1. Chapter 3 Economic Activity in a Changing World
3.1
U.S. Economic History

2. The Changing U.S. Economy
4 Major Economic Shifts
1600’s: Service-Based Economy
1700’s: Agricultural-Based Economy
1850’s: Industrial-Based Economy
1900’s: Information-Based Economy
All of these economies still contribute to today’s economy.

3. Measuring Economic Activity
Economic Indicators: figures used to measure economic performance.
How much a country is producing
If the economy is growing
How it compares to other economies
Gross Domestic Product (GDP): the total value of goods and services produced in a country in a given year.
To calculate GDP, economists find the sum of goods and services sold to businesses, consumers, the government, and other countries.

4. Gross domestic product 2010
(in millions : US dollars)
1. United States 14,582,400
2. China 5,878,629
3. Japan 5,497,813
4. Germany 3,309,669
5. France 2,560,002
6. United Kingdom 2,246,079
7. Brazil 2,087,890
8. Italy 2,051,412
9. India 1,729,010
10. Canada 1,574,052

5. Standard of Living
Standard of Living: the level of material comfort as measured by the goods and services that are available.
The more goods and services produced per person, the higher the standard of living.
The U.S. has a high standard of living mostly because of its productive workforce.

6. Unemployment Rate
Unemployment Rate: measures the number of people who are able and willing to work but cannot find work during a given period.
Factored in? Yes or No
Stay-at-home mother
Laid-off factory worker looking for a new job.
High school student

7. Rate of Inflation
Inflation: a general increase in the price of goods and services.
Goods and services cost more over time.
Deflation: a general decrease in the price of goods and services.
Goods and services cost less over time.

8. National Debt Government income comes mostly from taxed.
Governments spends tax money for things such as defense, education ,and social security.
Budget Deficit: when the government spends more money on programs than it collects in taxes.
National Debt: the total amount of money a government owes.
Budget Surplus: when the government spends less money on programs than it collects in taxes.

9. Homework Ch. 3 Definitions-Packet (Save to S:Drive)
Chapter 3-1 Reading Activity and 3-1 Graphic Organizer (Save to S:Drive)
Review questions on page 42, 1-3