Lecture Macroeconomics in context: A European perspective - Chapter 3: What Economies Do. In this chapter you will be able to: Define the four essential economic activities; define the five types of capital; explain the difference between stocks and flows; discuss the limitations of substitutability with respect to natural capital; understand the importance of maintaining capital stocks; describe the difference between exchange and transfer; define the difference between wealth and income; describe the distribution of income and wealth in the european union; describe how inequality is measured; describe the three spheres of economic activity. |
