Chapter1Summary - 1 Chapter 1 Summary Tucker,...

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Chapter 1 Summary Tucker , Macroeconomics for Today , 5th Edition. 1. The basic economic problem is the scarcity of productive resources relative to the virtually unlimited demands for goods and services that exist in any society. 2. Productive resources include non-human resources (land and capital) and human resources (labor and entrepreneurship). The potential productive capacity of any economy is determined by the size and quality of the resource base, and the level of technology. 2. This problem of scarcity gives rise to the production problem (What to produce and how to produce it) and the distribution problem (for whom is the output produced). Every economic society must answer these three questions in some way. 3. Possible responses of societies to the basic economic problem have included tradition, command and the market. This course focuses primarily on the macroeconomic problems of a market-oriented economy. 4. The study of economics may be divided into "microeconomics" and
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This note was uploaded on 04/02/2008 for the course ECN 211 taught by Professor Kingston during the Spring '08 term at ASU.

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Chapter1Summary - 1 Chapter 1 Summary Tucker,...

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