Economics in Louisiana Ch. 3 – Day 1

Economics The study of the production, distribution, and consumption of goods and services.

Goods Products consumers want or need, such as cars, clothes, food, medicine, and gasoline.

Services When people with special training or skill perform tasks for consumers. Ex: doctors, lawyers, teachers, mechanics do not produce goods, just services consumers are willing to pay for.

The 4 Questions of Economics What is being produced or sold? How will it be produced or sold? How much should be produced or offered? Who will buy the product or service?

Economic Systems: Market System Known as a free enterprise or capitalist system. Citizens are allowed to own their own property and operate businesses w/ little govt interference. The govt doesn’t own all the property or tell people how to earn a living.

Command System Used by Communist countries like Cuba and China. A small group of government officials decides how to answer the four questions.

Traditional System In this system, the four questions are answered according to custom and tradition. Ex: In some African countries, jobs are handed down from father to son and men and women do different kinds of work.

Public or private? Goods and services may be private or public. Most goods are private, meaning goods and services owned by individual or business are provided with the consumer paying the entire cost. Goods and services provided by the government are public goods and services. Public education, police, fire protection, and health clinics are types of public goods and services.

Products made in Louisiana seafood, oil, salt, sulphur, timber, gas, fish