Production Managing resources Physical production Distribution

Resources Natural Human Capital Entrepreneurial Renewable vs. nonrenewable Human Different types: skilled vs. unskilled physical vs. intellectual Capital Not money usually an asset Entrepreneurial Revolutionary new concepts on old ideas

Group work Look at a product (good) Determine all the factors that go into production Determine how that product goes from the ground to the shelf

Determining Production Resource location Uses for each resource Limits on resources How to Produce Resources within a country or business Who gets the end product Limiting factors Determining worth

3 Types of economy Market Command Mixed Supply vs. Demand Communism

Market Pure economics Price influencing production Consumer demands Production supply Consumer have choice on products Producers have choice on products No Government intervention

Advantage vs. Disadvantage Pro’s Con’s

Motivation Profit Competition Market share Freedom of choice Efficiency Monopoly Skill demand Need to fill supply No need for excess Pro’s Con’s

Commanding Determined by a central authority Communism Socialism State makes economic decisions Manages allocation of resources Socialism State manages major resources Individuals can still own business

Advantage vs Disadvantage Advantages Disadvantages

Decision making Equal standard of living State meets all basic needs Public employees Lack of freedom Luxuries not available Price fixing Wages fixed Pro’s Con’s

Mixing it up Trying to create the best mix Decrease gap between rich and poor Still allow wealth generation Give a choice in production Regulate basic needs Provide for people who cannot provide

Assignment Find an example of each economy in the world (other than the US) Describe why each country fits the characteristic of the economy Now what is the United States economy and why?