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LEGAL CLAIMS: Ownership of the physical goods, services, and resources that make up the real side of the economy. Legal claims are a key feature of the paper, or financial side of the economy. Transferring legal claims is the primary method of diverting income from household saving to investment and government borrowing. Legal-claim buyers loan income and legal-claim sellers borrower income.

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Lesson 5: Demand | Unit 5: Scarcity Page: 20 of 20

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  • Why scarcity and unlimited wants and needs are the source of demand.


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ECONOMY

The system of production, distribution, and consumption of goods and services that a society uses to address the problem of scarcity.

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ORANGE REBELOON
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Today, you are likely to spend a great deal of time at a dollar discount store hoping to buy either hand lotion, a big bottle of hand lotion or a lighted magnifying glass. Be on the lookout for malfunctioning pocket calculators.
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Helping spur the U.S. industrial revolution, Thomas Edison patented nearly 1300 inventions, 300 of which came out of his Menlo Park "invention factory" during a four-year period.
"Failure is the opportunity to begin again, more intelligently. "

-- Henry Ford, automobile manufacturer

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