Economics- The social science that deals with how society chooses to allocate scarce
resources given limitless wants or desires.
3. Capital-type of good
4. Entrepreneurship-keeps industries growing
Types of Economic Systems:
1. Command Economy-Public ownership of resources
2. Market Economy/Capitalist Economy-Private ownership of resources
3.Mixed System-Elements of both the command and market systems
1.What goods should society produce?
2.How should the goods be produced?
3.For whom should the goods and services be produced?
1.Household- 2/3 of economy
2.Firms- Transform resources into goods and services.
Macroeconomics-Economy as a whole Gross Domestic Product (GDP)
Microeconomics-Concerned with explaining individual economic sector behavior.
2.Price Stability(low inﬂation)
3. Economic Growth
4. Income Equality
5. Economic Security
Types of Economic Policy:
1.Fiscal Policy-The use of taxation and expenditure policy to pursue economic
2.Monetary policy-The use of money supply to pursue economic