Econ Unit 1 Midpoint

the study of decision making in a world where resources are scarce

what are the three basic questions of economics?

• what to produce

• how to produce

• where to produce

• for whom to produce

inputs needed for the creation of a good or service

what are the factors of production

• natural resources

• labor

• capital

• entrepreneurship

• a can do attitude

anything from nature needed to create a product

people who work for you to produce your product or service

items needed to produce your products

the will of a person to take a risk and open a business

-economic decisions made by customs handed down thro generations

-hunting, farming, gathering

-limited tech

-men+women typically have defined roles

-found in developing countires

-low per capita GDP, rural, non-industrialized areas

• traditional

• command

• mixed

• market

-limited individual freedoms

-gov makes most/all economic decisions and owns most productive resources

-gov answers all 3 of the basic economic questions, fixes wages of workers and sets prices

-communism!

• traditional

• command

• mixed

• market