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DEMAND SCHEDULE: A table that illustrates the alternative quantities of a commodity demanded at different prices.

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Lesson 13: The Firm | Unit 5: The Bigger Picture Page: 23 of 24

Topic: Business Sector <=PAGE BACK | PAGE NEXT=>

  • The business sector:

  • The business sector is the basic macroeconomic sector containing the private, profit-seeking firms in the economy that combine scarce resources into the production of goods and services.
  • The business sector includes all of the productive business firms in the economy.

  • This collective of business firms is one of four aggregate sectors used in the macroeconomic analysis of the economy.

  • The key function of the business sector is to produce the goods and services.


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INJECTIONS-LEAKAGES MODEL

A macroeconomic model that balances non-consumption expenditures on production (injections) and non-consumption uses of income (leakages) that is used to identify the equilibrium level of, and analyze disruptions to, aggregate production and income. The injections-leakages model is based on the principles of Keynesian economics and provides an alternative to the standard aggregate expenditures (Keynesian cross) analysis. The three injections included in the model are investment expenditures, government purchases, and exports. The three leakages included in the model are saving, taxes, and imports. Three variations are the two-sector injections-leakages model (or saving-investment model), three-sector injections-leakages model, and four-sector injections-leakages model.

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WHITE GULLIBON
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Today, you are likely to spend a great deal of time at a going out of business sale trying to buy either a key chain with a built-in flashlight and panic button or a green and yellow striped sweater vest. Be on the lookout for slightly overweight pizza delivery guys.
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It's estimated that the U.S. economy has about $20 million of counterfeit currency in circulation, less than 0.001 perecent of the total legal currency.
"It is very rare that you meet with obstacles in this world (that) the humblest man has not the faculties to surmount. "

-- Henry David Thoreau, philosopher

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