Week 4 HW

Over the course of the week, we learned about how voluntary exchange (the understanding that people will only trade if they feel that they will benefit from the trade) makes everybody wealthy, not necessarily rich. We also learned about the factors of production, which are Land (anything that comes from the Earth), Labor (the worker's/ people) and Capital (Physical capital: anything of inherent value. Human capital: the skills any person has). We learned the seven economic goals (Economic Equity, Economic Freedom, Economic Security, Economic Efficiency, Economic Growth, Full Employment, and Price Stability) and the two types of economic systems: Free Market (Freedom and efficiency) and Command (Equity and security) and that we can't have both types. America has a free Market. We learned about the Candy Bar idea (Get a credit card, buy a candy bar every day/every month, and pay it off immediately) and why we should all have credit cards, how they work, and why they work.

Land: You need the food to make the burrito (tortilla...)
Labor: You need workers to make the burrito.
Physical Capitol: Tin foil to wrap around the burrito to keep it warm/together.
Human Capitol: You need somebody who is good at cooking to prepare the food for the burrito.

My preferred methods of making somebody like me is to compliment them, or to ask them something personal (such as favorite color).