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Economics 20108 - • Tradition in the oldest countries the...

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Economics 2010 8/26/10 Not every health care service can be supplied; economics is study of how to allocate scarce resources. 3 economic problems What is produced? How it’s produced. For who? Economics Def : Economics is the science of choice Difference between econ and sociology o Econ: how choices are made o Sociology: how people don’t have any choices to make Whenever you make a choice you incur a cost (the cost is the highest value alternative you didn’t choose) Economics takes into account the study of benefits and the costs 3 Ways of solving the Economic Crisis
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Unformatted text preview: • Tradition: in the oldest countries, the way to solve the economic problems were with tradition. What? What we’ve always produced. For whom? For those that we’ve always given it too. How? How it’s always been done o Without tradition, our lives would be as shaky as a fiddler on the roof • Central Planning: In a planned economy. What is produced? Whatever the authority decides. For who? Whoever the authority decides. How? However authority wants it done. • Market system/price system (capitalism, free enterprise): System used in the U.S....
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