What is the basic concern of economics?
Scarcity
What is the basic problem of economics?
Scarcity 2
What is an entrepreneur?
A person who starts their own business and assumes all risks
What are the factors of production?
land, labor, capital, entrepreneurship
What are the basic economic questions?
What to produce? How to produce? For whom to produce?
What do economic systems do?
Answer the 3 basic economic questions
What is the motivation for starting a business in capitalism?
Profit
Market economy
Consumers control the resources, no government involvement
Command economy
Government controls resources
Traditional economy
Tradition and customs decide how to use resources
Mixed economy
Mix of command and market economies
A market economy
Is the same as free enterprise and capitalism
What is profit?
Money you keep after deducting costs
Who determines what is made in a free enterprise system?
Consumers
7 Social Goals
Efficiency, freedom, equity, full employment, price stability, security, growth