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AGGREGATE EXPENDITURE DETERMINANTS: An assortment of ceteris paribus factors that affect aggregate expenditures, but which are assumed constant when the aggregate expenditure line is constructed. Changes in any of the aggregate expenditures determinants cause the aggregate expenditure line to shift. While a wide variety of specific ceteris paribus factors can cause the aggregate expenditure line to shift, it's usually most convenient to group them into the four, broad expenditure categories -- consumption, investment, government purchases, and net exports. The reason is that changes in these expenditures are the direct cause of shifts in the aggregate expenditure line. If any determinant affects aggregate expenditures it MUST affect one of these four expenditures.

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Lesson 1: Economic Basics | Unit 1: Economics Page: 3 of 18

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  • The basic definition of economics, which is the scientific study of scarcity and how society uses resources.
  • That economics is also the study of how resources are used to produce goods and services that are used to satisfy consumers' wants and needs.
  • The importance of scarcity, opportunity cost, and analysis to the study of economics.
  • The three questions of allocation, What? How? For Whom?

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LEGAL BUSINESS ORGANIZATIONS

The alternative ways in which a business or firm can be legally organized. The three primary alternatives are proprietorship, partnership, and corporation. Differences among three are mainly based on: (1) number of owners and (2) the liability of the owners. A proprietorship has a single owner with unlimited liability. A partnerships has two or more ownership with unlimited liability. The owners of a corporation have limited liability.

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Today, you are likely to spend a great deal of time searching for rummage sales trying to buy either a birthday gift for your grandmother or a T-shirt commemorating yesterday. Be on the lookout for neighborhood pets, especially belligerent parrots.
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In the late 1800s and early 1900s, almost 2 million children were employed as factory workers.
"Wherever you go, no matter what the weather, always bring your own sunshine."

-- Anthony J. D'Angelo

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