1. 3 BASIC ECONOMIC QUESTIONS What? How? For Whom?

2. 1. WHAT GOODS AND SERVICES ARE PRODUCED?
DEFINITIONS
Goods – products or commodities,
Physical or tangible
Services – actions or activities
Provided, Cannot be resold

3. consumption -What do people want? What they see and know?
-In what quantities?
-Now or in the future?

4. 2. How should they be produced ?

5. “Production” Determined by the factors of production
-Land: natural resources
-Labor: human input – sweat and/or brains
-Capital: resources (tools) made or used by humans
-Entrepreneurship: individual willingness to take risk; to invent, to innovate, to organize

6. In what ratio are the factors of production combined to produce goods?
What technology is available?
What economic institutions influence production?

7. 3. FOR WHOM SHALL THEY BE PRODUCED?

8. “Distribution”
Who gets what
how much
and how do they get it?
What economic institutions influence production?
In what proportions do various factors of production receive goods and services?