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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.
- Winter '07