3 BASIC ECON QUESTIONS Anselmo arellano

¨The first lesson of economics is scarcity: there is never enough of anything to fully satisfy all those who want it. The first lesson of politics is to disregard the first lesson of economics¨ -Thomas Sowell

Random Fact - The unemployment rate for men is 8.4% , married men is 4.9%

What To Produce?

Society would produce resources in which they are lacking. The ideal of scarcity usually pushes a society and/or individual to begin a production. Society does not have the full luxury to produce and invest in everything because their is not enough resources. The large majority of the time the decision is over the production of military equipment or other items like food, clothing, and housing. If the decision was to produce more food then would these resources be used for low income, middle class, or upper income housing? With limited resources it is extremely crucial to produce what we NEED not WANT.

Random FACT: United States Debt as of September is 17.8 TRILLION Dollars

How To Produce?

After society has decided what they want to produce the next decision is what facility will produce the product. Method used today is mass production in which more machinery is used to assure higher payouts and more efficiency for production. Less people and more machines.

Random Fact- China produces the most gold in the world

As the example set before if it is clothing, someone will need to decide what factory will produce their clothing and how much to produce as well as locations that are most beneficial. Finding efficient machinery and equipment that can lower the costs and are most beneficial.

For Whom To Produce?

When Producing and creating items there needs to be a decision for what type of consumer is being targeted. If society decides to produce clothing, would they be given to people of wealthy professions, minimum wage, or a solid paying employee. A choice must be made to see who will get the resources and when.

The economy is key to balancing society. With these three questions we can make important decisions to ensure our limited resources are being used wisely.
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