Economic Systems
In this system individual people make their own choices
What is a Market system?
What is opportunity cost?
Deciding which resources should be used to produce which goods and services
What is allocation?
In this system the government makes all of the economic decisions
What is a Command system?
This forces to people to make decisions because you have unlimited wants but limited resources
What is scarcity?
When you do not use all of your resources, you produce less than you could have
What is inefficient?
In this system decisions are made the way they have always been made
What is a traditional economic system?
Option 1 has a burrito, salsa verde, beans and rice
Option 2 has a burrito and queso
The opportunity cost of option 1
What is queso?
A level of production that is impossible given your current resources
What is unattainable?
Option 1 has a burrito, salsa verde, beans and rice
Option 2 has a burrito and queso
The marginal benefit of option 1
What is salsa verde, beans, and rice (and byron)
Option 1 has a burrito, salsa verde, beans and rice
Option 2 has a burrito and queso
The marginal benefit of option 2