ECONS 102 Lecture Notes - Lecture 1: High Standard Manufacturing Company, Physical Capital, W. M. Keck Observatory
Document Summary
We determine using markets and supply and demand. Whoever is able to outbid for that piece of land will get it. That is, all economics face the irritating condition called scarcity: we have the means of production like land, labor, capital, entrepreneurship that make human wants such as food, clothing, shelter security, comfort, medicine, jewelry, etc. Humans always want more than we"re capable of producing so a market must decide what is best to produce. How does an economy like that of the united states address those decision: when we allocate resources there are two main processes of either the private sector driven by the market and the government driven by politics. What matters must is what the government does with the money they are taking from you. That means the military hires soldiers from the pool of people who apply at the given pay-scale.
