The 3 Economic Questions Chapter 2 Section 1

Think about this! Talk with a partner: Currently you have millions of options available to you in regard to food. Imagine is the government one day decided to destroy those choices and gave you only two: Garden Salad or Fish Sandwich How would this affect you? What would you do in response? How would this affect the world around us? Why do we feel this way?

3 Economic Questions What should we produce? How should we produce them? Who should get these goods?

What should we produce? Depends on the type of economy. Production Possibilities Curve Guns or Butter Scarcity means, every decision comes with a cost. New technologies

How should we produce it? What fuel should we use to generate electricity? Is education better in public or private schools? Should we outsource or build here?

How should we produce it? Efficiency Morality Difference of Opinion

Who consumes these goods/services? Who gets to drive the luxury car? Who has to take the bus? Who gets to go to college?

Who consumes these goods/services? Income Distribution Factor Payments – Money people get for their sold work or resources. Profit Money earned after you factor in costs.

Economic Goals and Values Efficiency Freedom Security Equity Growth Conflicts between these goals.

3 Questions Because societies answer these questions differently, based on their economic goals and values, multiple economic systems have emerged. These systems provide basic methods to make choices based on limited resources.

Paradox of Choice Some systems, such as ours, offer a multitude of choices. Is too much choice a bad thing?

Paradox of Choice Homework - Quick Write – Is too much choice a bad thing?