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1、Whenyouhavecompletedyourstudyofthischapter,youwillbeabletoCHAPTERCHECKLISTDescribewhat,how,andforwhomgoodsandservicesareproducedintheUnitedStates.1Usethecircularflowmodeltoprovideapictureofhowhouseholds,firms,andgovernmentsinteract.Describethemacroeconomicperformance—standardofliving,costoflivin
2、g,andeconomicfluctuations—oftheUnitedStatesandothereconomies.232.1WHAT,HOW,ANDFORWHOM?*WhatDoWeProduce?Inmacroeconomics,wedividethevastarrayofgoodsandservicesproducedinto:ConsumptiongoodsandservicesInvestmentgoodsGovernmentgoodsandservicesExportsofgoodsandservices2.1WHAT,HOW,ANDFORWHOM?*WhatDoWe
3、Produce?FinalgoodorserviceAgoodorservicethatisproducedforitsfinaluserandnotasacomponentofanothergoodorservice.IntermediategoodorserviceAgoodorservicethatisproducedbyonefirm,boughtbyanotherfirm,andusedasacomponentofafinalgoodorservice.ConsumptiongoodsandservicesGoodsandservicesthatareboughtbyindi
4、vidualsandusedtoprovidepersonalenjoymentandcontributetoaperson’sstandardofliving.Forexample,moviesanddentalservices.InvestmentgoodsGoodsthatareboughtbybusinessestoincreasetheirproductiveresources.Forexample,cranesandtrucks.2.1WHAT,HOW,ANDFORWHOM?*GovernmentgoodsandservicesGoodsandservicesthatare
5、boughtbygovernments.Forexample,missilesandbridges.ExportsgoodsGoodsandservicesproducedintheUnitedStatesandsoldinothercountries.Forexample,computersandbankingservices.2.1WHAT,HOW,ANDFORWHOM?*Figure2.1showstherelativemagnitudesofthedifferenttypesofgoodsandservicesin2002:2.1WHAT,HOW,ANDFORWHOM?*Con
6、sumption61%Investment13%Government17%Exports9%2.1WHAT,HOW,ANDFORWHOM?*HowDoWeProduce?FactorsofproductionTheproductiveresourcesusedtoproducegoodsandservices.Factorsofproductionaregroupedintofourcategories:LandLaborCapitalEntrepreneurship2.1WHAT,HOW,ANDFORWHOM?*LandLandAllthe“giftsofnature”thatweu
7、setoproducegoodsandservices.Allthethingswecallnaturalresources.Landincludesminerals,water,air,wildplants,animals,birds,andfishaswellasfarmlandandforests.2.1WHAT,HOW,ANDFORWHOM?*LaborLaborTheworktimeandworkeffortthatpeopledev
