hello Dave shot once again we're gonna do we're continuing on with our lectures for test three let's talk a little bit about the sociology of economics the economics is a marketplace right of exchange of goods and services and so that shaped politics it shapes our social lifestyle and shapes you know whether or not we go to Starbucks or not how much money we could afford to spend on a new car so there's basically three types of economic systems the one were most familiar with is capitalism of course it's an open competitive marketplace for the profit motive private wealth and property the opposite of socialism and a socialistic marketplace is closed everything is sort of owned and controlled by the government and the third is a mixed economy mixed economy is sort of has a hybrid you know places like Japan Canada have a mixed economy two parts of the economy I need you to know formal economy informal formal economy is money that's earned and taxes are paid to the federal government so if you work at a legitimate job right like I work at the college and I get paid and the money is automatically taken out for Social Security and taxes the informal economy is money that's paid into the that's that's earned rather but taxes aren't paid so let's say you you know you work at a restaurant and you only claim tips from credit card receipts but you don't claim cash tips that would be part of the informal economy the largest contributor the informal economy is drug trafficking drug trade most people that are selling drugs don't call the IRS and say anywhere to annoy us and the taxable income for that the global economy is an international marketplace of shared ideas shared technology we talked about a little bit earlier and in when we were talking about culture um transportation communication technology Information Age has really fueled that global economy and monopolies where one company dominates the entire product remount market segment we don't really have monopolies so much anymore but what we do have is oligopoly oligopoly is where just a few companies dominated an entire market segment we sort of see an airline industry we sort of suit with with communications with technology now with cellphone carriers we don't have a lot of competition so the fear with an OLE Agathe is that if there's only a few places to get it there might be some price fixing to drive the price of a product or service up because originally capitalism was designed as a highly competitive marketplace where we get the benefit of having all those competitors when we get the lowest price if you got a Nolan op Li and there's only two or three carriers that fly into it into an airport those prices are going to be driven up because if you want to fly you got to fly one of these free carriers and that's what it's going to cost to fly conglomerates is where you've got a principal holding company that owns lots of other kinds of things like Disney is a is a conglomerate right so it owns parks it don'ts hotels and restaurants it owns an island it owns a cruise line it owns ABC television it owns ESPN television so it's a conglomerate multinational companies or corporations are all over the world that can be find in every place just about on the planet so you probably find McDonald's almost anywhere you can find an Arby's almost anywhere you can find chick-fil-a almost well maybe not chick-fil-a you know Burger King a lot of different places on the planet a couple of sort of sub issues with with the economy one is terrorism terrorism is a threat or an action that's really designed to disrupt the economic and the political landscape in some way and then of course we've got xenophobia xenophobia is sort of an irrational fear dread of sort of like foreigners coming into the marketplace and taking jobs from from citizens okay hope those couple ideas helped