Economics 1740 Final Study Guide PDF

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Summary

Includes a collection of terms and definitions used in the final, a few short answer questions, as well as a complete essay regarding The New Deal and how it connects to concepts in the class....

Description

Economics: production, consumption and transfer of wealth

Social phenomena: all behavior that influences other behavior

Transaction cost: costs associated with buying, selling a good or service (the little things add up)

Free-rider: someone who benefits from other peoples work.

Institution: an established law, practice, or custom

Natural phenomena: not artificial, intuition and reasoning based

Externality: side effects of activity that affect parties not directly tied

Union: club formed by people with a specific interest, workers union

Ideology: system of ideas of economic background.

Commodity: raw Business cycle: material that can be series of economic bought or sold expand & contract

Market failure: when the market fails to give what we need

Capitalism: Economic and political system in where countries trade and industry are controlled by private owners.

Recession: a period of economic decline for 2 consecutive quarters. Depression: long and severe recession

Government failure: government fails to regulate and help the economy and people in it.

Collective action problem: individuals should cooperate but they fail because of conflicts

Technology: used in our everyday lives! This class for example would not be possible without technology, as we need computers to communicated, submit assignments, and take tests. We register for classes, apply for school, and communicate all through computers. Money/banks: My job pays me in paper checks every week and instead of having to go to the bank every week I4 can take a picture of my check with my phone and it will be submitted into my account almost instantly. This stimulates the economy because I will be able to sooner put money in my account and therefore be able to spend that money earlier than if I had to go to the bank all the time. Energy: Its a huge issue right now. But, I see more and more people driving teslas and other electric cars than ever. We are eliminating fossil fuels slowly but surely from our everyday lives. But at the same time, we are using more energy than ever before. With the flip of a switch we can turn on the heat or a light switch. Agriculture: obviously important, but not necessarily something I concern myself with often. I live in the city and don’t often think about people whose livelihood depends on farming.

Environment: highly concerning!! We have not done nearly enough to save our planet! We wmit way more toxins than ever before and nothing is truly being done to save us. Think about the inversion in SLC. Its thick, smoky, toxic air that is killing us slowly.

After the stock market crashed in 1929, unemployment skyrocketed. Nearly 15 million Americans were out of work. Obviously, this drastically hurt our economy and the well being of our citizens. Thats why in 1933, when Theodore Roosevelt was elected president, he implemented The New Deal. The New Deal was a series of projects that included the Emergency Banking Act, the Tennessee Valley Authority Act, the Glass-Steagall Act, the Home Owners Loan Act, and many more. These projects were designed to create jobs, affordable housing and necessities, that would in turn stabilized the U.S. economy. After receiving moderate success with the deals listed above, Roosevelt implemented what is sometimes called, “The Second New Deal”. This New deal included Social Security, Works Progress Administration, and the National Labor Relations Act. Roosevelt implemented the Emergency Banking Act to help the banks ‘regroup’. This act closed all banks for four days so that people were unable to withdraw money from unstable banks. After this period, it was clear which banks were stable and able to move forward versus the ones that were past the point of recovery. The unstable ones were closed. Roosevelt then pushed people whose previous banks had closed to put their funds into one of the recognized banks. This would not only help struggling americans save funds, but also help the banks business. These acts and more were later carried on by President Franklin Roosevelt. Energy was also a big concern for Americans after the great depression. This was because of a shortage of coal due to World War I. Coal then became very expensive and since Americans didn’t have jobs, they couldn’t afford it. Therefore, Roosevelt imposed the Tennessee Valley Authority Act that generated hydroelectric power from the Tennessee River. This energy was much more affordable to people in the area. This energy was also much better for the environment too! No coal was burning and intoxicating our already post war air quality, but rather generating from water and motors. As we have already discussed, it was difficult to get a job during this time since employers couldn’t afford to pay employees. This really hurt self employed people, such as farmers. These farmers were used to selling their crop to grocery stores and production companies, but these companies and stores had a much lower demand than previous years. This meant farmer would have an abundance of crop on their hands and not nearly as much money as they had in years prior. Congress recognized this issue and issued checks to farmers who would stop farming until the surplus of food was over. This would allow the prices of crops to increase and everyone in the chain fro farmer to store would make more money. During this time of need for economic growth, many projects were undertaken, including many improvements to our very own University of Utah. Buildings such as the fieldhouse, the old library, and more were constructed. This is due to the Works Progress Administrations which employed millions of people to do public projects. This put money in the workers pockets, grow

cities around the country, and bettered communities. The airport is another example of a project the WPA began. Overall, the New Deal(s) greatly helped citizens gain financial stability, jobs, and a renewed outlook on life after the dreary depression days. Meanwhile, it is stimulating the United States economy as a whole, as well as fixing many of the issues the depression caused such as the banking crisis and supply and demand relationships.

https://www.history.com/topics/great-depression/new-deal...