What is Economics

Economics is the study of how society chooses to allocate its scarce productive resources (labor, capital, land, entrepreneurial talent).

Economics is the study of how society chooses to allocate its scarce productive resources (labor, capital, land, entrepreneurial talent).

In a mixed economy, elements of both central planning and market allocation of resources are used in allocating productive resources.  The United States economy is a mixed economy, with a bias towards market allocation of resources.  This means most resources are allocated in the private sector by way of markets.

Discuss whether you favor a larger or smaller role of government in the economy.  Refer to concepts found in the reading to support your opinion.