Basic Economic Decisions Ch. 13 Sec. 2 Pp. 358-361

Main Economic Decisions Which goods and services should be produced, and in what amount? How should these goods and services be produced? Who will get the goods and services that are produced?

What and How Much? People who own or can get resources decided what will be produced and in what quantity, or amount.

How to Produce Goods and Services When making production decisions, people choose the combination of resources that will cost the least. Technology helps lower productions costs.

Who Gets What? Wants are greater than resources, so this is a difficult decision. A society’s goals and values influence the way they answer the basic economic question.

Questions What is the second major decision made in an economy? a. What and how much is produced? b. Who protects the environment? c. How are goods and services produced? d. Who gets the goods and services?

Questions How has technology affected the economy of the United States? a. has increased production costs b. has reached few Internet buyers c. has had little or no effect d. has reduced production costs

Questions What is the term for the practical application of science to commerce or industry? a. research and development b. technology c. Internet d. Scientology

Questions What influences how a society makes the three basic economic decisions? a. the available resources b. the technology level used by labor c. the society’s goals and values d. the wants that people have

Assignment You are to create a comic strip demonstrating the main ideas of one of the three topics (i.e., “What and How Much”). Identify which one it is. Your comic strip (of three or more panels each) should have dialogue or labels explaining what is going on. You may use color, but it is not required.b