Using Wheelan as a guide, discuss how economic decisions about what to produce, how to produce, and how much to produce are made.
In Wheelan's book, Naked Economics he explains that there is scarcity that leads to decisions on production and concumption. There are two different types of markets, one where the government decides like in communism and a market that is governed by the principe of supply and demand which is the US's market. Profits are ususally always the incentive to produce, so to produce the most inexpensively as possible is always the greatest goal, while keeping quality. If there is no quality then poeple are not going to buy, and there will only be debt.
There is such thing as the invisible hand in economics that was first explained by Adam Smith. People will always trade in order to gain whatever resource that they need, whether it be money, time, entepreneuership or labor. With this being said, supply and demand will do the rest. In the US where the government does not regulate the amount of production, this principle tells businesses what and how much to produce. Supply and demand allows producers to create whatever will five the largest marigin of profit/ gain. If a resource is scarce, they will then increase the price in order to preserve the resource and make more to sell. If nobody buys, they do not produce.
Even though you are writing for time, you must try to make sure that you are communicating clearly. Although you hit on the importance of profits, you went astray when you addressed quality. Always keep the prompt in mind. Comments like "supply and demand will do the rest" are simplistic and does not provide clear explanation or reasoning. You could have tried explaining how supply and demand works. You will definitely understand this before the class is over. The "invisible hand" is not separate from the profits that you mentioned in your first paragraph and must be connected to "self interest."
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