Monday, March 7, 2011

Define the major economic goals

Economic Growth - Increase in the production of product and services to boost the economy and improve the living standards.
Full Employment - Opportunities should be available or created for the people of country who are willing and able to work.
Economic efficiency - Improve productivity by utilizing the resources in a better way, this approach will reduce the expense overhead of the product and services and allow the manufactures to sell their products at lower prices in the market.
Price- Level Stability - Variable up and down in the prices of goods and services reduce people trust on government. It is better to control the major upswings and downswings in the price level.
Equitable distribution of Income - Government have to ensure the proper distribution of income among people to lower the percentage of poverty level.
Economic Security - The people which are disable, chronically ill, laid off, aged or earning low income should be supported.
Balance of Trade - Overall balance in international trade with other countries and financial transactions

List and dicuss the four types of resources


Labor, Land, Capital, Entreprenurial

Labor- is a measure of the work done by human beings

Land-comprises all naturally occuring resouces whose supply is inherently fixed. Examples are any and all particular geographphical locations.

Capital-is the factor of production, used to create goods or services. Other types of capital: Capital goods and Real Capital

Entreprenurial-is the study of the entreprenuer and entreprenuership within the economy.