1. Economics Study of how societies decide:  What to produce.  How to produce it.  How to distribute what they produce.

2. Factors of Production  Land, labor, and capital; the three groups of resources that are used to make all goods and services.

3. Natural Resources  Gifts of nature that make production possible.  http://www.idahoforests.org/wood_ you.htm http://www.idahoforests.org/wood_ you.htm

4. Scarcity  There are a limited amount of goods and services that are available to meet unlimited wants.

5. Trade  Exchange of goods and services.

6. Specialization  When people, businesses, regions, and/or nations concentrate on goods and services that they  can produce better than anyone else. They trade with countries that cannot make or provide that product. In return, they will receive products they cannot make or provide for themselves.

7. Import/Export  Import- Goods and services bought domestically but produced in other countries.  Export Goods and Services sold to other countries.

8. Traditional Economy  The customs and habits of the past are used to decide what will be produced, how it will be produced, distributed and consumed.  Jobs are handed down from generation to generation. Examples: Farmers Hunters Gatherers Craftsmen- potter, blacksmith, cooper, shearer, tanner.

9. Command Economy  Government planning groups make the basic economic decisions.  Government decides:  What to produce  How to produce  Who to produce for.  Prices.  Wages Government owns and controls all factories, farms and businesses

10. Market Economy  Individual buyers and sellers determine.  What is produced  How its produced  Who to produce for.  Individuals and corporations own the businesses and competition determine prices and wages.  Examples:  Mexico  Brazil  United States

11. Mixed economy  Almost all countries have characteristics of traditional, market and command economies.  Example  Most countries have small communities that barter and create their own products.  Most countries have individuals creating their own businesses and controlling their productions, distibutions and consumptions.  Most countries have their government create laws to protect both businesses and individuals.