ECO 203 Week 1 Discussion 2

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.

Reference: Chapter 2: Markets, Governments, and Nations:  The Organization of Economic Activity