Introduction to Economics.

What is Economics? - the study of the production, distribution, and consumption of goods and services. Resources are the inputs used to produce outputs. I took a class earlier in my second year of school and it didn't really come together mentally until I continued my classes that I could understand the lingo and the entire concept of what it meant. 

This figure helps me understand how resources that involve inputs and outputs create a cycle that is necessary for a country to function. I love visuals and being able to understand how a company can make and break a system necessary for an economy to thrive. 

• Discuss the economy of another country (not the one where you currently live). For instance, what type of economy does the country have? What are their major industries and their competitive issues? Which industries or services are privatized and which are government-owned? Also discuss the unemployment rates, monetary policies, and fiscal policies.

Russia is the 6th largest economy in the world. They are a market-based economy following the fall of the Soviet Union, heavily influenced by natural resources, and it has a high level of state involvement. Russia's primary exports are oil and gas. GDP is equivalent to $1.78 trillion. Current government elections are managed to generate predetermined outcomes. Economic assets and wealth are gathered in the hands of the government. Government officials keep the government and business interests aligned, and property rights are weak. Inflation and unemployment rates were at 4.5% in 2019. Economic growth may be weakened due to a shrinking population and reliance on natural resources. (Link) I think this oligarchy of the past has led to the destruction of the future unless they are able to keep their population thriving and natural resources within the country. 

• The text discusses different types of economic systems. Which type of system do you believe is ideal? Explain why.

There are four types of economic systems - Perfect competition, monopolistic competition, oligopoly, and monopoly. Out of these (4) systems I think that monopolistic competition would benefit us for the future as we are allowed multiple sellers, no identical products, a differentiation of products allows variety in the market as well as the type of quality, style, convenience, location, etc. Price will consume the MP to compete within a group setting. Buyers are persuaded through marketing and sales to perform sales for a good or service. There will be downsides including loss of businesses due to inflation thus causing limited control on price. With each system, the risks go hand in hand with the rewards.