Acct 554 Economics Project

Economics Project
The economic system of the United States is complex and has many working parts. The U.S. uses all three of the options of what to do with any surplus. The citizens either store and consume the excess goods, or they put it in a type of “fund” or exchange goods for other necessities. When thinking about what allocation of resources the U.S. uses, they use a combination of the subsistence fund, replacement fund, social fund, ceremonial fund, and for most people half of their resources go to the rent fund. Our culture also uses all three types of exchange: market principle, redistribution and reciprocity. We use market principle to exchange the money we received from working to exchange for products we need/want in everyday life. …show more content…
There is the subsistence fund, replacement fund, social fund, ceremonial fund, rent fund. As an individual, I only use the subsistence fund. I earn a very small amount of money every week and my check is only spent on the subsistence fund. I only have enough money to pay for the things I need like food and gas. If I were to look at the “funds” we use as a married couple, I would say seventy percent of our resources go to the rent fund, while twenty percent goes to the subsistence fund, and the other ten percent goes into the social fund. After paying rent and buying groceries, there is sometimes enough money where my husband and I can go on a date night to the movies or some kind of a social …show more content…
I use market principle every single day when I spend money to receive something I need. Reciprocity is also an important type of exchange that is used in my everyday life. I use generalized reciprocity between my husband and I. We do things for each other every day and don’t always expect things back in return. My husband knows I have intense back pain so whenever I am having a bad day he always gives me a massage to help relieve the tension. He does this out of the kindness of his heart not because he believes he will get a massage afterwards. My friends and I use balanced reciprocity. When I do something nice to help out a friend, I expect them to help me when I need them. Sometimes my best friend asks me to give her son a ride to school when she is running late from work and I always help her because she does the same for me when I need it. Negative reciprocity is used between my father and I. Often times I end up with the better end of the deal. My dad is constantly giving me gas money or helping me in some way, and every once in a while I help him by picking up my sister from school. I would say I always get the upper hand because I am always taking more than I give when it comes to my

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