Economy Essay

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Homework Week 1 The first part of this essay will include a question and answer, which economic system is best suited for handling a crisis of epic proportions (hurricane, flood, blizzard, forest fire, etc.)? Why? TO start off this answer I want to inform the audience what economy is. According to Business in Action, by Courtland L. Bovee, and John V. Thill, “The economy is the sum total of all the economic activity within a given region, from a single city to a whole country to the entire world. The economy can be a difficult thing to get your mind wrapped around because it is so complex, constantly in motion, and at times hard to see—even though it’s everywhere around us.” Also noted within this paragraph, “Economics is the study of how a society uses its scarce resources to produce and distribute goods and services.” (Chapter 2, Page 26, 2nd paragraph) It is considered that Socialism may be the best suited government for handling natural disasters. This is due in part to the non-profit way the government is run; it also have fewer moving parts than other forms of government, meaning clean up and rescue may happen quicker. An economic system based on social ownership of the means of production, collective-decision making in management, and production organized directly for use. There are several hypothetical versions of socialism, such as market-based socialism, planned economies and decentralized-planning. But also, natural resources such as land, water, minerals, and other things can be useful in their natural state. A natural resource is a material that comes from the Earth and in its raw or "natural" state is of value for one reason or another. A natural resource is not man made and is already on the Earth. Some examples of natural resources would be oil, timber, and water, as well as a variety of minerals, metals and ores like salt, coal, and metals like

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