1. resources are scarce = Economies address 3 economic questions:
What goods and services should be produced?
How should these good and services be produced?
For Whom to produce these goods and services?

3. Traditional Economy Definition:
Relies on habit, custom, or ritual to decide the three economic questions.
Defining Features:
Little room for innovation or change
Revolves around the family
Work divided along gender lines
Small and close communities
Remain stagnant, resisting change (both on Individual and Community Level)
Slow to adopt new technology or radical new ideas
Low standard of living

4. Market Economy Definition:
Decisions are made by individuals and are based on exchange, or trade.
Also called: FREE MARKET/Capitalism
Details:
Choices made by individuals determine what gets made and how (and who consumers the goods and services produced)
2:10!

5. https://www.youtube.co m/watch?v=oUbpGmR1- QM
2:30

6. Command Economy
The central government alone decides how to answer all three key economic questions.
Also Called: centrally planned economies
Details:
Central authority is in command of the economy

7. Mixed Economy Definition:
Market-based economic systems in which the government plays a limited role
Details:
Exist because no one is self-sufficient
Markets allow us to exchange the things we have for the things we want
Establishes goods and services that markets cannot so efficiently or fairly
Balance between control and freedom

12. CRASH COURSE W/ MR. CLIFFORD
1:00- 5:40

13. WERE THE SMURFS COMMUNIST?