Economic Resources
Just as individuals have to deal wtih a lack of resources, so do socities. resources are necessary to make what people want and need. A shortage of resources is called scarcity. Nations do not have enough economic resourcs or factors of production to satisfy all of the wants and neds of their people. Factors of produciton that go into makign goods and sevices include natural, labor, capital, and entrepreneurial resourcs.
Econonmic Systems
Because all nations must deal with the scarcity of economic resouces, each must set up an economic system that determines what and how much will be produced, how items will be produced, and who will receive what is produced. There are two primary types of economic systems. jA market economy focues on indivduals answering the three economic quesions through the interaction of supply and demand. In a planned economy, the government makese those decisions. Each country has attributes of both.
BLOG-Reflection
Which economic system does the United States have? Describe that econmy.
Why does a country have to develop an economic system?
Explain how scarcity requires individuals and nations to make decisions about resources.
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