March 21, 2018 

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GOVERNMENT ENTERPRISES: Government owned and operated productive activities that operate much like private sector firms. They hire resources and purchase other inputs, then produce goods that are sold through markets. In some cases, government enterprises compete directly with private firms. One common example of a government enterprise is a city-operated electrical generation and distribution system. In some cities, this service is provided by private, for-profit, businesses and in other cities it is provided by government. Other examples of government enterprises include urban transportation systems, parks and recreational facilities, and communication systems.

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Lesson 14: Aggregate Supply | Unit 5: Connections Page: 20 of 20

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  • Questions over undertaking government policies or letting the self-correction mechanism of the aggregate market achieve full employment.
  • An introduction into supply-management policies that can be used to reduce macroeconomic instability.
  • How aggregate supply comes together with aggregate demand for a model that we can use to analyze our macroeconomy.

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A pervasive condition of human existence that results because society has unlimited wants and needs, but limited resources used for their satisfaction. This fundamental condition is the common thread that binds all of the topics studied in economics.

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