1. Intro to Economic Systems
Social 9 - Chapter 6

2. What is an Economy/Economic system?
The way a nation makes economic choices about how it will use its resources to produce and distribute goods and services

3. Resources
AKA factors of production, are all the things used in producing goods and services
Four categories:
Land: everything on earth that is in its natural state (earth’s natural resources)
Labour: the people who work in the economy
Capital: money needed to start and operate a business. At a national level, capital includes infrastructure, such as roads, ports, sanitation facilities and utilities
Entrepreneurship: the skills of people who are willing to risk their time and money to run a business

4. ECONOMIC SYSTEMS SCARCITY
An organized approach to producing and distributing goods and services.
Land – Labour – Capital - Entrepreneurship
Purpose: to make important decisions about the use and distribution of resources.
All economic systems deal with the same problem:
SCARCITY
Unlimited wants
vs.
Limited resources

5. Scarcity
Scarcity: the difference between wants and needs and available resources
Example: Most underdeveloped nations have natural resources, but do not have capital or skilled labour to develop them

6. Economic Systems answer the problem of scarcity
Limited Resources > SCARCITY < Unlimited Wants

7. Scarcity forces us to make choices about…
What to produce?
How to produce?
For whom to produce?

8. ECONOMIC SYSTEMS - Market Economy/Private Enterprise
- Command Economy/Centrally Planned Economy
- Mixed Economy

9. Economic Systems Spectrum

10. Introduction to Economics
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