1. The goods that a society produces is limited by the scarcity of resources. We must be able to make a choice on how to use and how much of these limited resources to use. Also one must factor in the opportunity costs which is the value of the decision that you are making. Since once you use a certain resource you cannot reuse it, one must be wise about how things are used. This means goods should be produced at a low opportunity cost.
2. How a society produces goods is the process of transforming the limited resources into good and services that can be sold and used by the society that lives in that region. Goods should be produced using a low opportunity cost but one must also factor in trade-offs, since trade-offs always involve opportunity costs.
3. Who consumes the goods and services produced depends on what what was produced and where it is going. If someone is able to buy a good without political restriction, it often means they are able to consume it.
No comments:
Post a Comment