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06.01 Economic Relationships
Transcript of 06.01 Economic Relationships
Economics with financial literacy
Rest of the World
It is much more costly for the government to purify drinking water that takes its source from polluted water bodies. This will drive up the price in the product market
The financial market is in charge of all the loans economic players use to meet their goals. The government needs these loans in order to pay for the programs, products and jobs that control water purification.
Taxes are paid to the government by the people to preserve and sustain clean water.
The government regulates the preservation of clean water that will not cause the family household illness.
The bottled water that people buy comes through the product market.
People are hired to work in businesses and companies that purify water. They earn a salary.
Regular people donate money to the water pollution effort.
The product market gives people ready access to bottled water that is clean and contains no contaminants.
The factory market is in charge of the exchange of the factors of production including components of land, labor, and capital. Business firms must hire labor and exchange factors of production. For example, these businesses could provide equipment to the companies regulating water in exchange for purified water.
Businesses make money when their products are sold in the product market.
The product market benefits from merchandise produced by business firms because it allows smaller companies to sell products that have already been manufactured and approved. An example of this could be clean water containers, or water bottles.
We export products to countries, such as bottled water, and clean water.
The equipment used to clean and purify water is not always native to the United States. Many of these items could come from around the world.
Business firms use their money to get machinery and equipment that provides them with clean water in return.
Our financial market is not limited to just the United States. We can provide financial assistance to other countries for them to start their own water purification programs. In turn, this can create a positive impact on our country, if we are willing to trade our products for their clean water.
Our financial market is capable of loaning money to fellow countries so they can purify their water as well.
Businesses invest their money in stocks. This revenue can be used to purchase the necessary equipment and machinery needed to manufacture healthy water.
"Effects of Water Pollution." Effects of Water Pollution. Web. 22 Jan. 2015.
"Effects of Water Pollution." LoveToKnow. LoveToKnow Corp, 2006-2014. Web. 23 Jan. 2015.
"How Governments Influence Markets." Investopedia. N.p., 06 Jan. 2011. Web. 23 Jan. 2015