Jan08 - -Continual advancement all of the time 15 of...

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Business Organizations (2006) 23mill Single Prop. 3mill Partnerships (personal assets are vulnerable) 4mll Corporations Total: 30mill Businesses Firms supply about 11.5 Trillian to Product Market -Called "Gross Domestic Product" Product Market then supplys to Households (common public) 80% of GDP are services (not physical products) -Services are considered as a "unnecessary" luxuries -Large majority of service GDP demonstrates an advanced economy (US, Japan, etc. ..) Factors of Production (inputs) -Labor (150mill) (about half of the population) -Capital -Machines -Structures (buildings, factories, offices, warehouses, etc. ..) -Vehicles *Money is not a form of capital. ..It is a method of exchange* -Natural resources (Raw Materials) -Oil, rivers, lakes, mineral deposits, etc. .. -Entrepreneurship -Technical Knowledge -Technology used to produce product or servce (ex. We are much better at creating cars than Henry Ford was today because of technology)
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Unformatted text preview: -Continual advancement all of the time 15% of capital (machinery) are idle at any given time-Idle time is used for maitenance and etc 5% unemployeed members of society Economic resources are scarce, Ends exceed our Means-We would like to have more than we can produce, however they are scarce-If I want more of something, then Im forced to give up something else Frank Knight (Nobel prize winner) 1. What goods and services do we produce? 2. How are those goods and services to be produced? 3. Who gets the goods and services we do produced? Chinese economy was centralized (no growth) (starved many citizens) (run by maniacs) US is a market economy (3-4% growth) Chinese convert to market economy (now 10% growth) Products that are produced are not determined by the Firms but instead by the public...
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This note was uploaded on 04/07/2008 for the course ECON 1 taught by Professor Bergstrom during the Winter '07 term at UCSB.

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Jan08 - -Continual advancement all of the time 15 of...

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