goods services
Identify the basic questions all economic systems address Objective 9.1 4 Identify the basic questions all economic systems address
WHAT is to be produced?
The entrepreneur must determine the “thing” that people will be What is produced? The entrepreneur must determine the “thing” that people will be willing and able to buy
FOR WHOM is it to be produced?
The market is the people who are For whom? The entrepreneur must identify the market The market is the people who are willing and able to buy
HOW to produced?
HOW many are to be produced?
How goods produced? The entrepreneur must determine materials he is willing and able to use to create the g&s
The entrepreneur must guess the amount that people are How many? The entrepreneur must guess the amount that people are willing and able to buy
materials are: Land or Resources labor capital$ How goods produced? materials are: Land or Resources labor capital$
materials are scarce resources How goods produced? materials are scarce resources
land + labor + capital + entrepreneur = factors of production How goods produced? land + labor + capital + entrepreneur = factors of production
The four economic questions are: WHAT HOW HOW MANY FOR WHOM