Question: Economics is the study of how society chooses to allocate its scarce productive resources (labor, capital, land, entrepreneurial talent).
- In a mixed economy, elements of both central planning and market allocation of resources are used in allocating productive resources. The United States economy is a mixed economy, with a bias towards market allocation of resources. This means most resources are allocated in the private sector by way of markets.
- Discuss whether you favor a larger or smaller role of government in the economy. Refer to concepts found in the reading to support your opinion.