ECO 2023- Chapter 1

ECO 2023- Chapter 1 - Chapter1 (notagoodwaytoorgthe...

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Chapter 1 3 Bigs Questions societies have to answer: What and How much will be produced? How will goods and services be produced? Who will get goods and services? Ways societies use to organize the economy? Traditions – what did before is what is going to do now (not a good way to org the  economy, because doesn’t respond well to change) Government planners – planned economies/command based economy, ex. Cuba  and North Korea (not good because inefficient, cannot provide for people  because government doesn’t take people’s self interests seriously and therefore  social interest is not advanced) Capitalism (markets, prices and property rights) Market= anything that allows buyers and sellers to get together and transact their  business; buyers buy and sellers sell   Generates prices Property rights= socially determined rights that govern the use of and disposal of  property (land and anything you own, ex labor) Encourages to keep/fix property rights in good condition bc in your self interest People’s make decisions mostly in self interest and therefore society that betters  by people following their self interest in going to thrive Most efficient: WHEN SELF INTEREST BECOMES SAME AS SOCIAL  INTEREST THUS SOCIETY THRIVES
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ECO 2023- Chapter 1 - Chapter1 (notagoodwaytoorgthe...

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