Changes

*Allow someone to use your land in exchange for rent.

*Allow someone to use your land in exchange for rent.

*Start a new business to earn profits.  But watch out here: 9 out of 10 new businesses fail (often because the owners do not understand -- or do not follow -- basic Economic rules).

*Start a new business to earn profits.  But watch out here: 9 out of 10 new businesses fail (often because the owners do not understand -- or do not follow -- basic economic rules).

Sounds simple enough, right?  Look around you, and you’ll see people earning money each of the four above ways.  Mostly, you’ll see the first way: get a job and earn some wages.  That entails the least risk and is the easiest for most people.  Adults and teenagers often follow the path of least resistance, and often imitate others.  In economics, that means getting a job to work for a company.  It’s great until the economy goes through a downturn and you get "laid off" (fired), or the job becomes tiresome and tedious, or the boss fires you because he did not like something you said.  Then it’s not so great anymore.  But as a teenager you can earn money from someone else while you are learning how business works.  You may need experience and savings before you make money the other three ways.

Sounds simple enough, right?  Look around you, and you’ll see people earning money each of the four above ways.  Mostly, you’ll see the first way: get a job and earn some wages.  That entails the least risk and is the easiest for most people.  Adults and teenagers often follow the path of least resistance, and often imitate others.  In economics, that means getting a job to work for a company.  It’s great until the economy goes through a downturn and you get "laid off" (fired), or the job becomes tiresome and tedious, or the boss fires you because he did not like something you said.  Then it’s not so great anymore.  But as a teenager you can earn money from someone else while you are learning how business works.  You may need experience and savings before you make money the other three ways.

Finally, the third way that the Fed affects the economy is in its market operations: it buys and sells U.S. government securities, the instruments the government uses to finance itself.  Buying these securities is the same as loaning the federal government itself money.  Keep in mind that the Federal Reserve is not the government itself, but operates as an independent agency set up by the government.  On its website, the Fed states that it "is not owned by anyone"!

Finally, the third way that the Fed affects the economy is in its market operations: it buys and sells U.S. government securities, the instruments the government uses to finance itself.  Buying these securities is the same as loaning the federal government itself money.  Keep in mind that the Federal Reserve is not the government itself, but operates as an independent agency set up by the government.  On its website, the Fed states that it "is not owned by anyone"!

 

===Keynesian Economics===

===Keynesian Economics===