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Understanding Economic Activities and Financial Capital in Commercial Production

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Learn about the four essential economic activities, the role of financial capital, resource maintenance, stock flows, distribution of income, and the three spheres of economic activity.

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Understanding Economic Activities and Financial Capital in Commercial Production

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  1. Chapter Three: What Economies Do

  2. Introducing the Four Essential Economic Activities

  3. Figure 3.1: The Role of Financial Capital in Commercial Production commercial production financial capital financial capital

  4. Resource Maintenance: Attending to the Asset Base of the Macroeconomy

  5. Stock Flows Stock Additions Initial Next Stock Stock Subtractions Time Figure 3.2: The General Stock-Flow Diagram Initial Next Stock Stock

  6. Additions or Inflows Stock Subtractions or Outflows Figure 3.3: A “Bathtub”-Style Diagram

  7. Distribution: Who Gets What, and How?

  8. Table 3.1: Distribution of U.S. Household Income in 2009

  9. Figure 3.4: Lorenz Curve for U.S. Household Income, 2009

  10. Figure 3.5: Lorenz Curve for Sweden Household Income, 2009

  11. 100 CumulativePercentof Income 80 60 A 40 B 20 0 20 40 60 80 100 Percent of Households Figure 3.6: The Gini Ratio,

  12. Figure 3.7: Income Shares of the Richest and Poorest Households, 1968-2010 Top 5% of households Share of Income (%) Bottom 20% of households

  13. The Three Spheres of Economic Activity

  14. Physical Context Social Context Economic Activity Core Business Sphere Sphere Public Purpose Sphere Figure 3.8: Social and Environmental Contexts of Economic Activity Natural Inputs(flows of naturalresources and environmental services) Outputs(pollution and wastes)

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