Chapter 1

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Unformatted text preview: ur Fundamental Problem! 6 Resources/Raw Materials Labor (lumber/iron/copper/crude oil/etc) (time/effort/energy) Human Capital (experience/education) Physical Capital (man-made goods) Hopper (some economic system) Goods (shoes/jeans/food/etc) Govt. Provided (roads/education/defense/etc) Services (medical care/car maintenance/haircuts/etc) 3 QUESTIONS FOR SOCIETY 7 1. What How much? How many acres of corn to plant? How many of wheat? How many SUV’s ? How many tanks? How many Prii? 2. How should we make the goods/services? What is the best (most efficient) combination of inputs to make the good/service? 3. How do we allocate the goods/services that we do make? Economic Systems 8 Less Government Singapore U.S. Hong Kong Australia More Government China France Cuba Venezuela North Korea also: Index of Economic Freedom 2012; Heritage Foundation and The Wall Street Journal 9 ECONOMICS AS A SOCIAL SCIENCEPositive Language Normative vs. Normative concerned with how the...
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This note was uploaded on 02/19/2013 for the course ECON 201 taught by Professor Baker during the Spring '07 term at University of Tennessee.

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