Outline Notes Kailey Lyson Chapter 3 Section 1: KL Introduction: By the late 1980s, the state-run Soviet economy was in shambles. Consumer goods were scarce. People had to wait in long lines to buy food and other necessities. Store shelves were frequently empty of all but one or two poorly made goods. Section 2: KL Introduction: If resources were unlimited, we could all have whatever we want, however, resources are not unlimited. The Three Fundamental Economic Questions: What to Produce, How, and for Whom?: In deciding how to use and distribute limited resources, has three economic questions to ask, the questions are the same for everyone. What goods and services are to be produced? Because of scarcity, no society can produce everything its people might want. This raises the question: What goods and services are most wanted and needed? How are goods and services to be produced? Goods and services are produced by combining the factors of production: land, labor, and capital . For whom are goods and services to be produced? Goods and services are distributed in a variety of ways. The ability to pay is the approach most of us know best. Another approach is equal distribution. Another approach is first come, first served. There is also the distribution according to need A Society's Answers Depend on Its Economic Goals Economic freedom: the ability of people to make their own economic decisions without interference from the government Full employment: a condition in which everyone who wants to work can find a job Economic equity: the fairness with which an economy distributes its resources and wealth Economic growth: a condition in which an economy is expanding and producing more and better goods and services Economic security: the idea that the less fortunate members of society should get the economic support they need to live a decent life Economic stability: a condition in which the goods and services people count on are available when they want them
Section 3: KL Intro: economic system: a society’s way of coordinating the production and consumption of goods and services
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