Fundamental Economic Questions

* Scarcity

- limited resources

- many needs

-> food, shelter, clothing, clean water, etc.

- limitless wants

-> modern society grows on invented wants

-> advertising convinces that needs are wants

* What and how much to produce?

- the which factory question

- not everything can be produced, choices required

-> boots or shoes?

-> cars or motorcycles?

-> 50 or 500,000 LeBron jerseys?

- possible decision makers:

-> business owners

-> government specialists

-> consumer requests

-> tradition, what was made before

* How to produce?

- the what factory process question

- multiple production possibilities, choose

-> by hand or by assembly line?

-> using environment friendly materials or not?

-> at one big factory or at local plants?

- possible decision makers:

-> business owners

-> government specialists

-> tradition, how it was made before

* Who does the producing?

- who’s in the factory question

- why do some people do some things and not others?

-> women or men as cops?

-> educated people or not as judges?

-> poor people or rich people as artists?

-> Whites or Blacks as corporate presidents?

- possible ways to decide:

-> business owners

-> government specialists

-> tradition, who did it before

-> merit tests

-> the group working

* How are benefits distributed?

- the who gets the profits question

- modern society produces a great deal, who benefits?

-> Whites or Asians earn the most money?

-> women or men get paid more?

-> desk workers or ditch diggers make more?

-> basketball stars or teachers make much money?

-> bankers get million dollar bonuses after near-economic collapse?

-> everyone gets what they need?

-> everyone gets the same?

- possible ways to decide:

-> catch as catch can (them that gots, gets)

-> government doles out income

-> tradition, how it was given before

-> need measuring

-> egalitarianism

* What about the environment?

- what are the side effects question

- any production effects the environment

-> cheap tables and clear-cut forests or pay more?

-> nice tasty meat or environmentally sustainable

vegetarian focus?

-> cars or the ice cap?

- possible ways to decide:

-> business owners

-> government specialists

-> tradition, how it was done before