Economics Resources & Systems by ASHVI VYAS

Economics

ashvivyas27 — 2024-08-22 15:36:40 UTC

Study of producing, distributing, and consuming goods and services

market

carlieduffy27 — 2024-08-22 15:37:33 UTC

Decisions on what, how, and whom to produce too are based on individuals acting on self-interest

command

carlieduffy27 — 2024-08-22 15:37:38 UTC

Decisions on what, how, and whom to produce to are chosen by the government for the people

mixed

carlieduffy27 — 2024-08-22 15:37:45 UTC

Decisions on what, how, and whom to produce to are chosen by the people based on self-interest and the government.

Factors of Production

ashvivyas27 — 2024-08-23 15:12:53 UTC

Land
Labor
Capital
Entrepreneurship

Price

ashvivyas27 — 2024-08-23 15:14:03 UTC

Can fluctuate on demand and scarcity

Supply

ashvivyas27 — 2024-08-23 15:14:25 UTC

The amount of stuff there is of an specific item

Demand

ashvivyas27 — 2024-08-23 15:14:49 UTC

People's wants of a certain item

Equilibrium price

ashvivyas27 — 2024-08-23 15:16:23 UTC

The quantity demanded equals the quantity supplied at the price that clears the market.

Economic Systems

ashvivyas27 — 2024-08-23 15:19:06 UTC

Traditional
Command / Planned
Market / Capitalism
Mixed

Disadvantages

carlieduffy27 — 2024-08-23 15:19:11 UTC

market- Prices can fluctuate and not everyone can have a steady income.

Mix- Creates an idea of freedom but in reality, is not and the government and the people may disagree leading to an unstable life.

Command- The government struggles to come up with realistic prices and may not recognize people's needs.

The 3 Economic Questions

ashvivyas27 — 2024-08-23 15:20:03 UTC

What to produce?
-What kinds of goods & services should be produced
How to produce?
-What productive resources are used to produce goods & services
For whom to produce?
-Who gets to have the goods & services

advantages

carlieduffy27 — 2024-08-23 15:22:33 UTC

Market- The people can choose based on what is needed for themselves

Mix- The mix of the systems makes it possible for prices to be more regulated and ensures people's needs are met.

command- People do not have to worry about inconstancy and everyone is provided for.

Relationship b/w supply and demand

ashvivyas27 — 2024-08-23 15:28:00 UTC

The relationship between supply and demand is constantly changing. If supply is down, it usually is because demand is high. If demand is low, that usually means that supply is average or highly stocked, not getting much business. An equilibrium price fits in because if demand is low compared to the supply, then that is not an equilibrium price because it is not clearing the market and vis versa.

Examples

carlieduffy27 — 2024-08-23 15:29:32 UTC

Command- North Korea and Nazi Germany

Mix-USA and Canada

market- Native Americans and tribes

carlieduffy27 — 2024-08-23 15:31:31 UTC

How does a market system decide what will be produced?

ashvivyas27 — 2024-08-23 15:31:46 UTC

A market system decides what will be produced based on the individual's decisions and their self-interest. There is no government involvement.

carlieduffy27 — 2024-08-23 15:32:56 UTC

In a market system, what determines how many goods and services an individual can buy?

ashvivyas27 — 2024-08-23 15:33:54 UTC

Only private businesses and individuals decide what resources (goods and services) an individual can buy.

How can that be true that some nations can produce more goods with fewer workers than other countries that have more workers?

carlieduffy27 — 2024-08-23 15:37:10 UTC

Some countries can have harder working workers or have more advanced technology or systems making it easier to produce faster. Some countries may also try to skip out on quality making things easier to produce and faster.