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CAPITAL: One of the four basic categories of resources, or factors of production. It includes the manufactured (or previously produced) resources used to manufacture or produce other things. Common examples of capital are the factories, buildings, trucks, tools, machinery, and equipment used by businesses in their productive pursuits. Capital's primary role in the economy is to improve the productivity of labor as it transforms the natural resources of land into wants-and-needs-satisfying goods.

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Lesson 20: Federal Reserve System | Unit 5: Issues Page: 19 of 20

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

Politics are never far from economics, especially when doing economic policies.
  • Some people prefer lower unemployment and higher inflation, while others would rather have higher unemployment and lower inflation.
  • If the Chairman of the Fed is inclined for lower unemployment and higher inflation, then the Fed is more likely to do expansionary monetary policy.
  • If the Chairman of the Fed is inclined for higher unemployment and lower inflation, then the Fed is more likely to do contractionary monetary policy.

Federal Reserve founders took special steps to avoid an overtly political affiliation, to avoid making the Fed part of the current administration.


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CONSUMER CONFIDENCE INDEX

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 Conference Board. The Conference Board is also responsible for compiling the leading, coincident, and lagging economic indicators. The Consumer Confidence Index is one of two primary measures of consumer attitudes. The other is the Index of Consumer Sentiment developed by the University of Michigan.

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Today, you are likely to spend a great deal of time searching for rummage sales wanting to buy either a birthday greeting card for your uncle or a T-shirt commemorating the 2000 Presidential election. Be on the lookout for florescent light bulbs that hum folk songs from the sixties.
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Before 1933, the U.S. dime was legal as payment only in transactions of $10 or less.
"Far and away the best prize that life has to offer is the chance to work hard at work worth doing."

-- Theodore Roosevelt, 26th US president

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