Module 1: The Study of Economics 

Economics : Study of choice and scarcity

• Every economic issue involves ==individual choice ==

• The United States has a market economy

• No central authority is making choices for the consumer

• An alternative to market economy is ==central economy ==

• In central economy, there is a central authority

• Failure of Command economy in the Soviet Union

  1. Lack of raw materials to produce

  2. Nobody wanted the products which were being produced

  3. Consumers had trouble finding essential commodities (with having to stand at long lines)

  4. Lack of incentives'