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INDEX OF CONSUMER SENTIMENT: A measure of consumer attitudes, preferences, and expectations concerning the state of the economy and business-cycle conditions that is compiled each month by the Survey Research Center at the University of Michigan. The Index of Consumer Sentiment is one of two primary measures of consumer attitudes. The other is the Consumer Confidence Index developed by The Conference Board.

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Lesson 11: Circular Flow | Unit 1: Basic Flow Page: 2 of 22

Topic: Four Sectors <=PAGE BACK | PAGE NEXT=>

The four basic macroeconomics sectors:
  • Household sector: This includes everyone, all people, seeking to satisfy unlimited wants and needs. This sector is responsible for consumption.
  • Business sector: This includes those undertaking the task of combining resources to produce goods and services. This sector is responsible for the production.
  • Government sector: This includes the ruling bodies of the federal, state, and local governments. Regulation is the prime function, especially to pass laws, collect taxes, and force other economic sectors to do things that they wouldn't do voluntary.
  • Foreign sector: Includes everyone and everything beyond the boundaries of the domestic economy.

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ECONOMICS OF UNCERTAINTY

The study of the role that uncertainty plays in the economy and in the allocation of resources, with special attention paid to the analysis of risk. Key topics in this area of study and analysis are risk preferences (aversion, neutrality, and loving) and the provision of insurance. This study of the economics of uncertainty is part of the broader study of the economics of information.

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Today, you are likely to spend a great deal of time searching for rummage sales hoping to buy either several magazines on computer software or a T-shirt commemorating the second moon landing. Be on the lookout for telephone calls from former employers.
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Lombard Street is London's equivalent of New York's Wall Street.
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