To create anything for "us" to consume, we need four ingredients: Natural resources (water, oil, minerals). Labor: The effort and skills people provide. Capital: The tools and machinery used to make other things.
Economists split the world into two main views to understand how we function: 1. Microeconomics (The Small Scale) Focuses on how individuals and businesses make decisions.
A blend of both, which most modern countries (including the U.S.) use to balance freedom with social safety nets. 💡 Factors of Production
Focuses on how we perform collectively as a nation or the world. The total value of everything we produce.