Define economy:

  1. What to produce?

    2. Ideally, the consumer needs decides this. These goods & services are limited by scarce productive resources.

  2. How to produce?

    3. The businesses decide this.

  3. How to distribute it?

The money-pricing system.

 

Methods of distribution:

  1. Arbitrary

  2. Equality

  3. Status

  4. Merit

  5. Fitness

  6. Random

  7. Need