ECON 1 Lecture Notes - Lecture 2: Opportunity Cost

• School: UC-Irvine
• Department: Economics
• Course: ECON 1
• Professor: Amanda Brindley

Document Summary

Know the 3 economic questions: what to produce, how to produce, and who consumes what is produced know societal values that determines how a country answers these questions. Know what is traditional command & market economies + societal values that influence them. Different economic goals different answers to the 3 questions. Four economic systems have developed in response to the 3 questions. Recall that scarcity forces societies and nations to answer hard economic questions different economic sys. respond to different levels of scarcity. An economic system is the method of used by society to to produce and distribute goods and services. What kind of econ. sys. a country adopts depends on its societal values and goals: three key economic questions. Economic resources are limited thus, society must answer the 3 eq (economic questions): Each society must decide what to produce in order to satisfy its needs and wants.