LECTURE 9.13 ECONOMIC SYSTEM

LECTURE 9.13 ECONOMIC SYSTEM - Lecture 2: Economic System...

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Lecture 2: Economic System 9/13/11 Economic System – a mechanism by which land (natural resources), labor, and capital are brought together in order to produce and then allocate goods and services to people o Natural Resources can be: Renewable Wood, water Nonrenewable Oil Inexhaustible o Oil US is the world’s biggest oil consumer – and importer Demand is creeping, prices are soaring as more countries crave oil Demand for gas rises in summer, but supply doesn’t always keep up The effects ripple through the economy Major oil countries (South Africa and Middle East) Iraq, Saudi Arabia These countries don’t like the US Political instability within these countries We are getting oil from Canada because we are friendly with them, but oil there is very expensive Since countries are developing, there is less likely for terrorism and political instability o Other sources of energy Nuclear Very dangerous - radiation
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This note was uploaded on 02/23/2012 for the course ECON 162 taught by Professor Mammen during the Fall '12 term at UMass (Amherst).

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LECTURE 9.13 ECONOMIC SYSTEM - Lecture 2: Economic System...

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