Learning Goal: I’m working on a business discussion question and need the explanation and answer to help me learn.
Using bullet points, explain in detail how the contents of the article relate to the (1) economics perspective, (2) the five questions an economic system must answer, (3) the difference between market-based capitalism and central planning command systems socialism regarding answering the five questions, (4) the four lessons from the production possibilities model-limitations of production for the time being given fixed resources and fixed technology, choices tradeoffs and costs, economic efficiency- full employment productive efficiency and allocative efficiency, economic growth generated by an increase in the quantity or quality of resources or improvement in technology/productivity.
1. The economic perspective (scarcity, choices, costs, rational behavior, opportunity cost, marginal cost or benefit, incentives matter, secondary effects, generalizations, macroeconomics v.s. microeconomics, positive v.s. normative economics, 8 economic goals, economic fallacies, voluntary trade, economic models or economic theory’s ability to predict)
2. The five questions an economic system must answer (what to produce, how much to produce, how to produce it, for whom to produce it, and how to accommodate change)
3. The difference between makes-based capitalism and central planning command systems socialism regarding answering the five questions
4. The four lessons (the limitation of production, Choices/tradeoffs and Costs, economic efficiency (full employment, productive efficiency, allocative efficiency), economic growth (increases in resources, better resource quality, and technological advances or productivity)).