Economic systems

1: The “factors of production” are as follows: · Natural resource (land, oil, etc.) · Labor · Capitol · Knowledge · Entrepreneurship A mixed market (free) economy is much more efficient than a command and control (planned) economy. With a mixed market, comes the law of supply and demand. Products will only be produced if there is a demand for them. In a mixed economy there is opportunity and room for invention, growth, and evolution because there is a chance for …

…outside of unions. (First took place in the late ‘50s, early ‘60s.) An example would be any clothing line on the market. Kathy Lee may be a good, (but bad) example of this. She began the production of her clothing line outside of the U.S., in order to cut labor costs. Sure, the labor sure was cheaper, but it turns out she was employing children for pennies on the hour somewhere in the Orient.