1. The Fundamentals of Economics
Economics: the study of how people and nations use their limited resources to try and satisfy wants and needs
Governments guide and regulate economies

2. Every economy has: PRODUCERS (people who make goods/services)
DISTRIBUTORS (people who get products to buyers)
CONSUMERS (People who purchase goods/services)
LABOR (the work people do or workers themselves)
CAPITAL (money/resources necessary to purchase
or invest in production)
ENTREPRENEURS (risk-takers who use the other
factors of production for profits)

3. All economies answer three questions:
What and how much should be produced
How should goods and services be produced
Who gets the goods and services that are produced?

4. Classifying economic systems:
METHOD #1: How the economies work
Traditional (what it is based on, i.e. agriculture, fishing,
bartering, etc.)
Market
Command
Market (determined by what buyers)
Command (determined by government)

5. METHOD #2: classify by how it is related to political beliefs
Capitalism
Socialism
Communism
Mixed