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GOVERNMENT POLICIES: Government actions designed to affect economic activity and pursue one or more economic goals. Also called economic policies. The four common types of government policies are: fiscal, monetary, regulatory, and judicial.

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Lesson 3: Scarcity | Unit 2: Resources Page: 7 of 17

Topic: Comparisons <=PAGE BACK | PAGE NEXT=>

Some times the differences between these four resource types are not clear cut.
  • What is the difference between entrepreneurship and labor? Do they have membership cards?
  • What is the difference between labor and capital? Aren't people produced?
  • What is the difference between land and capital? Is farmland natural or is it produced like capital?

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LEGAL RESERVES

The combination of vault cash and Federal Reserve deposits that banks can legally use to satisfy government reserve requirements. Legal reserves, which can also be considered total reserves, are divided between require reserves and excess reserves. Required reserves are used to back up deposits and process daily transactions, while excess reserves are then available for interest-paying loans.

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[What's This?]

Today, you are likely to spend a great deal of time at an auction wanting to buy either a square lamp shade with frills along the bottom or an electric coffee pot with automatic shutoff. Be on the lookout for defective microphones.
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The word "fiscal" is derived from a Latin word meaning "moneybag."
"Progress always involves risk. You can't steal second base and keep your foot on first. "

-- Frederick B. Wilcox

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