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Economic Systems. Economic Systems. The method used by a society to produce and distribute goods and services. Command System. System where the government of the basic economic decisions is in control. Scarcity.
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Economic Systems • The method used by a society to produce and distribute goods and services.
Command System • System where the government of the basic economic decisions is in control.
Scarcity • Fundamental economic problem of having seemingly unlimited human wants and needs in a world of limited resources.
Opportunity Cost • The things not chosen when you make an economic decision.
Needs • Things people require for survival (food, clothing, shelter, etc.)
Resources • Raw materials that other things are made from, including labor.
Goods • Tangible products (things you can touch like shoes or backpacks.)
Services • Work done for others (car repair, childcare, etc.)
Wants • Ways of meeting needs (unlimited.)
Traditional Economy • System where custom decides the major economic decisions and the roles people play in the system.
Free Enterprise/Market Economy • System where the basic economic questions are answered by individuals and businesses, and influenced by the forces of supply and demand.
