- Economy: Producing, buying, and selling goods and services.
- Labor Force: All
the men, women and children who could work.
- A labor force contributes
to an economy that is working well by being large enough and skilled
enough to do all the jobs that have to be done.
- Equipment and tools contribute to an economy that is working well
if there are enough of the right tools and equipment available
to do the work that is needed.
- Transportation contributes to an economy that is working
well because there has to be transportation available to carry resources
and products to places they are needed.
- Credit: Ability to borrow money.
- Credit contributes to an economy that is working well because
an economy needs credit available for both the people buying goods
and the people selling goods so that they don't have to wait to
buy what they need.
- Demand for products
and services contribute to an economy that is working well because
there must be a demand for products and services in order for anyone
to make money.
- Profit: Money made
from selling a product or service after taking out the cost to make
the product or service.
- A company makes a profit when it can sell a product or service
for more money than it cost to make it.
- The cost of a product or service is determined by the availability
of natural resources,
equipment and tools, transportation and credit.
- The selling price of a product or service is determined
by its demand.
- Making a profit contributes to an economy that is working well
by allowing companies to stay open for business thus creating jobs
for people and creating the need for other companies to supply them.
America makes an economic shift
- Businessmen switched their businesses from trade
to manufacturing because
they could make big profits in
- Banks began investing money and offering credit to new American
manufacturing businesses because other manufacturing businesses
were making so much money.
- Agricultural Economy: Economy that met most of the needs of the
- Depression: When economic problems get bad and people are out
- The demand for the agricultural products of the West came from
the Northeast and countries in Europe.
- The product of the South that was in the greatest demand was cotton.
- Two factors that were essential
to the continued health of the Southern economy were:
a. slave labor