The lecture provides economic problems: Unlimited Wants Scarce Resources – Land, Labour, Capital Resource Use Choices The 3 basic questions: What goods and services should an economy produce? – should the emphasis be on agriculture, manufacturing or services? should it be on sport and leisure or housing? how about education? healthcare? infrastructure? How should goods and services be produced? – labour intensive, land intensive, capital intensive? efficiency? Who should get the goods and services produced? – even distribution? more for the rich? more for the poor? more for those who work hard?
The Economic Problem The Economic Problem • Unlimited Wants • Scarce Resources – Land, Labour, Capital • Resource Use • Choices A wind farm Due to scarcity, all societies or economies must answer The Basic Questions • What goods and services should an economy produce? – should the emphasis be on agriculture, manufacturing or services? should it be on sport and leisure or housing? how about education? healthcare? infrastructure? • How should goods and services be produced? – labour intensive, land intensive, capital intensive? efficiency? • Who should get the goods and services produced? – even distribution? more for the rich? more for the poor? more for those who work hard? Due to scarcity, all societies or economies must answer The Basic Questions; continued • That is, an economic system must decide the allocation of inputs(resources) among producers, the mix of output, and the distribution of output, no matter the scale of the economy and level of development • All societies are endowed by nature and by previous generations with scarce resources Every society must decide how to use these inputs to satisfy human wants • Specifically, resources must be divided up among producers who transform them into goods and services that in turn must be allocated among households or members of society Reflection • Identify one (1) economic problem faced by Vietnam government • As a role of economic advisor, how can you solve this specific problem? What are the strategies you would take? ... of society Reflection • Identify one (1) economic problem faced by Vietnam government • As a role of economic advisor, how can you solve this specific problem? What are the strategies you would...The Economic Problem • Unlimited Wants • Scarce Resources – Land, Labour, Capital • Resource Use • Choices... scarcity, all societies or economies must answer The Basic Questions; continued • That is, an economic system must decide the allocation of inputs(resources) among producers, the mix of output,