Money Matters

Part 4

Brainstorm about what businesses that began or expanded because of the mass production of the automobile. (These would include suppliers to both industries, capital equipment manufacturers, producers of complementary goods, and the construction industry.)

Take a look at the following definitions and descriptions:

  • Suppliers provide all the parts and materials needed to make a car and the car companies assemble those parts.
  • Capital goods are the factory, tools, and the machinery used in production.
  • Complementary goods are ones that consumers demanded because cars became the main means of transportation.
  • Examples of these would be roads, gas stations, hotels, restaurants, repair shops, housing, etc.

Complete the Interdependence Web Activity

After you've completed the activity, be prepared to discuss the following:

1 -What types of jobs does any business need to function?
2 - When workers in these jobs earn income from their jobs, what are the three major uses they make of their income?
3 - When income declines, what happens to the three 'things' you identified in the previous question?
4 - When demand for cars declined in the late 20s, what kinds of companies business declined?

Author: Pat Rox
Last modified: 6/6/2013 5:55 AM (EST)