Corporations, Nonprofits, and Labor Unions

Corporations, Nonprofits, and Labor Unions — page 3
CHAPTER ONE THE PATH TO CONTEMPORARY ECONOMIC SYSTEMS An economy is the wealth-producing segment of society Wealth is the sum of one’s assets minus one’s total liabilities liabilities such as debt People have needs and desires which are satisfied by the production of goods and services Societies that can barely afford to fulfill the basic needs of food shelter shelter and clothing are considered poor Economies like that of the United States sustain their people’s needs and far beyond beyond allowing them to afford luxuries that people of other countries cannot A society creates wealth by producing goods and services services Goods include such objects as apples clothes toys houses airplanes and roads Services are things that people do for others for example gymnastics lessons teaching banking military service music concerts and dental care Money defines the value of a product or service It is the means by which two unlike products or services are exchanged 6