There really is no generally acceptable definition of capitalism.
A market system is sometimes described as being based on
capitalism, a system in which private citizens own the factors of
production. A market economy is based on free enterpris
Consumer Goods vs. Capital Goods:
Consumer goods directly satisfy our wants, while capital goods satisfy indirectly
since they permit more efficient production of consumer goods.
Think about what a nation must sacrifice in terms of its consumer good
Competitive Market System
The theory of Capitalism must have some guidance if society
desires to get what it wants in terms of goods and services. The
Competitive Market System functions mostly efficiently because it
relies on its answers to the Five Fund
Why do people trade?
Both parties gain. Just as individual specialize so do nations and
the result is greater output and income.
Why does a school hire a teacher who has a degree in teaching?
To gain the greatest benefit for the students in their educatio
questions answered by custom, habit, religion or law
use of trial and error, past decisions on resource allocation and
choices are limited, change comes slowly, often with opposition
family values are key to social
Steps in Policy Economics
State the goal
A clear, specific
individual should have
Determine the policy
opportunity to work
Fund vocational training
policies to achieve
programs in high schools
Why Study Economics?
The ideas of economists and political philosophers, both when they are right
and when they are wrong, are more powerful than is commonly understood. Indeed
the world is ruled by little else. Practical men, who believe themselves to b
A product market is the different transactions through which
finished goods and services are exchanged for consumption
In the circular flow diagram, the flow of products from businesses
to consumers constitutes the product m
Science concerned with how resources are used to satisfy wantsthe
Study of how people and countries use their resources to produce,
distribute and consume goods and services.
examination of behavior related to how goods
PPC is an economic model to demonstrate opportunity costs and tradeoffs. The
curve diagrams the various combinations of goods/services an economy can produce
when all productive resources are employed. There are 4 assumptions regarding the