Economics; What is an Economy?

Jay Z, Kate T, Jonathan E



Land is everything found on earth and in the seas. Living things like animals, trees, and plants are apart of land. Coal and crude oils are also apart of the natural resources. Land includes climate and geography too. If the climate is nice then more tourists will be inclined to visit that place. Land is an important part of marketing because if people like the resources you have then people will visit your place and the marketers can make money.


Labor refers to the people that work. Labor is people that work part time and full time. There are two parts of labor; private sector and public sector. The private sector is the part of the national economy that is not under government control. The public sector is the part of the national government that is under government control. Economies with well trained and well educated labor have an advantage over other nations.

Capital: Jay

Capital is the money to start and operate the business. It is the goods that are used in the production process. Factories, office buildings, computers and tools are examples of capital resources. Some raw materials can also be capital resources. Capital also includes infrastructure. Infrastructure is the physical development of a country. The capital is important because without it marketers would not have enough funds to develop goods.  


Entrepreneurship is the process of starting a business or other organization. Entrepreneurs use the factors of production to create goods that are part of the economy.  



Scarcity is the difference between wants and needs and available resources. Scarcity forces nations to make economic choices that include what good and services should be produced, how they should be produced, and for whom they should be produced for. In the United States we are fortunate enough to have an educated labor force, capital, an abundance of entrepreneurs, and many natural resources. However, we are still unable to meet the needs of our citizens due to the fact the many citizens live beneath the poverty level.  

Types of Economies

Jonathon E.

Traditional Economies

Traditional economies are economies which answer the three questions based off of religious practices and ideals. What gets produced is based off of the practices performed in the religion. How this gets produced is the same as it has been for all generations of this religion. Who gets this product is determined by their religious center and the consumers religious center.

Market Economies

Market Economies are economies where there is no government involvement in any sort of decisions involving the market. The market answers these three economic questions: What gets produced. How to produce them (Price and quality) and For whom are the products directed toward.

Command Economies

A Command Economy is a system where the government makes all the decisions about the economical state, including the three economic questions. What gets produced is determined by a group of government officials in a committee. How it gets produced is regulated by the government owning all means of production, meaning they decide how goods and services are produced. The government also determines who will receive the good, to ensure that there is equal distribution among people.

Mixed Economies

No economy is only. traditional, market, or command. The U.S is referred to as a mixed economy which has a lot of hints of being a market economy, however there is some government involvement in the place of labor laws and social programs. Most, if not all, economies are mixed today, so a meaningful economic classification is determined by the amount a government adds on to the free market. Capitalism, socialism, and communism are the three philosophies which have shaped the world.

Three Political Economic Philoshpies

Capitalism: Kate

Capitalism is a political and economic philosophy created by the marketplace competition and private ownership of businesses. Capitalism is also known as free enterprise and capitalism is found with the democracy form of government. The government cares about its people and believe that the political power should be in the hands of the people. The people elect candidates, that one political party choose to represent, who agree with their philosophy on how the government and economy should be run. The United States is an example of one of these countries.

Communism: Kate

Communism is a political, economic, and social philosophy in which the government controls the factors of production. Within this type of  philosophy, there is no private of ownership property or capital, assigned jobs, and assigned schooling system and house accommodations. North Korea is one of the few communist countries left.

Socialism: Kate

Socialism is referred to the system on its way to the communist ideal of a classless society. Most countries today who are defined as socialist, have democratic political institutions. The main goal is to meet basic needs for everyone and provide employment. Socialism differs from capitalist nations due to the increased amount of government involvement in economy.  Some countries that obtain socialist elements in their economies are Canada and Sweden.

Economies in Transition

Moving Toward Privatization: Jay

Privatization is the transfer of ownership, property or business from the government to the private sector. Socialist countries are selling their state-run businesses to fund for this movement.

Developing Economies: Kate

Developing economies mostly occur in poor countries who have little industrialization. Much of the success in their countries depend on improving the education level of their work force and using foreign investment efficiently.  Chad is an example of on of these countries who are working to develop their economy

Comment Stream