Economics in Louisiana

Ch. 3 – Day 1

Economics• The study of the

production, distribution, and consumption of goods and services.

Goods• Products consumers want or

need, such as cars, clothes, food, medicine, and gasoline.

Services• When people with special training or skill

perform tasks for consumers.

• Ex: doctors, lawyers, teachers, mechanics do not produce goods, just services consumers are willing to pay for.

The 4 Questions of Economics

• What is being produced or sold?• How will it be produced or sold?• How much should be produced

or offered?• Who will buy the product or

service?

Economic Systems:Market System

• Known as a free enterprise or capitalist system.

• Citizens are allowed to own their own property and operate businesses w/ little govt interference.

• The govt doesn’t own all the property or tell people how to earn a living.

Command System• Used by Communist countries like Cuba

and China.• A small group of government officials

decides how to answer the four questions.

Traditional System• In this system, the four questions are

answered according to custom and tradition.

• Ex: In some African countries, jobs are handed down from father to son and men and women do different kinds of work.

Public or private?• Goods and services may be private or public.

Most goods are private, meaning goods and services owned by individual or business are provided with the consumer paying the entire cost. Goods and services provided by the government are public goods and services. Public education, police, fire protection, and health clinics are types of public goods and services.

Products made in Louisiana

• seafood, oil, salt, sulphur, timber, gas, fish