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The national government or central planning committee answers the 3 basic economic questions.

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the human-made objects used to create other goods and services

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costs that are made in the past and cannot be recovered

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alternatives that must be given up when a decision is made.

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alternatives that must be given up when a decision is made.

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shows how well an economy is doing. Show production capabilities of a company.

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Freedom of choice, competition, stability

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Land, capital, labor, entrepreneurs

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Who, What, How

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The national government or central planning committee answers the 3 basic economic questions.

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an economic system that relies on habit, custom, or ritual to decide the three key economic questions

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system in which individuals own the factors of production and make economic decisions with limited government interference

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People may freely participate in the market.

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Weighing what you sacrifice compared to what you gain to help you make the best decision

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Laisse-faire economics. Wealth of Nations.

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Encourages people to improve their financial well-being. What businesses are motivated by.

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an economic system where businesses are owned privately

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Choosing one thing and giving up the next best alternative

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study of how people try to satisfy unlimited wants through limited resources

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condition in which there aren't enough resources to meet wants