Ch.+3.2

Ch. 3.2 Questions #1-6

> b. Innovation helps the economy by bringing in new products to the market which means more variety on goods and services which means more money. 6. Economic stability is measured by making sure that sudden and drastic price shifts do not happen. Another way that the government measures the stability of the economy is by making sure that national financial institutions, such as banks, are in good health. By good health it means that they aren't being shut down or that fraud or mismanagement exists in the facility.
 * 1) Macroeconomics is the study of the behavior and decision making of entire economies. An example is Gross Domestic Product or GDP and how it is affected by changes in unemployment, national income, rate of growth, and price levels. Microeconomics is the study of the economic behavior and decision making of small units, such as individuals, families, households, and businesses.
 * 2) GDP provides a means to analyze economic growth by studying the changes in unemployment, national income, rate of growth, and price levels.
 * 1) GDP tells economists about business cycles by letting them know if the businesses are thriving or if they are loosing money.
 * 2) An example of technology that has changed productivity in the US is the light bulb, this allowed for people to have longer work days which meant more goods and services.
 * 3) a. A patent promotes innovations by someone recouping their money that they invested in research for something. A copyright promotes innovation by allowing inventors to take credit for their invention and make money from it, sometimes enough for them to quit their day job.