1. What to produce ?

2. How to produce ?

3. For whom to produce ?

4. You have the resources to build 2 3-bedroomed houses
The following groups are all looking for accommodation.
For whom do you produce?
Group2 : a granddad.
Has worked his whole life and paid his tax, however he has always rented, and a large family prevented him from, ever being able to buy a house. He is now retired and none of his family have room for him in their house. He cannot afford the market price.
Group1 : a middle-aged couple with a young daughter.
They have the money and are willing to pay the market price. The are returning Salvadorians who lived and worked in the USA for the past 15 years
Group3 : an orphaned family.
4 kids, 2 older, 2 younger. Escaped war-torn neighboring country, Their parents have been killed They were living in the bush and near to starvation when the Red Cross found them
Group4 : a childless couple.
Both have jobs, though the wife is considering being a housewife. They sold their separate houses and wish to buy a shared house to live in. Can easily afford the market price
Group5 : a single mother.
Her husband, who was the family earner, left her for another younger woman. She has no formal skills or education and the husband and his new girlfriend have taken over the family home.

5. You have 100 production hours available
You have the factors of production to produce certain amounts of all the following goods… .
What do you produce?
Goods
Demand
1 unit takes up 5 hours.
Generates $500 per unit
Creates 10 jobs per unit
Higher-income market
Sports cars : Bread:
Cake : Mobiles:
1 unit takes up 0.5 hours.
Generates $1 per unit
Creates 0.1 job per unit
Middle-income market
Sports cars : Bread:
Cake : Mobiles:
1 unit takes up 1 hour.
Generates $5 per unit
Creates 0.5 jobs per unit
Lower-income market
Sports cars : Bread:
Cake : Mobiles:
1 unit takes up 2 hours.
Generates $50 per unit
Creates 2 jobs per unit

6. MR MURGATROYDS DECISIONS
What I would produce!
scarcity
Each $ is worth 1 point, each Job is worth 3 points = 2925 19
Goods 25 3
Creates
GDP 15 40
$2665 25
Each failed demand costs you.
CAR : 1 point
CAKE : 2 points
BREAD : 100 points
PHONE : 2 points
= 2925 – 99 = 2826
EMPLOYMENT
86.5 20