1. Economic Questions
Chapter 2 Section 1

2. Identify three key economic questions that all societies must answer.
WHAT goods & services should be produced?
HOW should these G & S be produced?
WHO will consume these G & S?

3. Depending on how the 3 questions are answered depends on the type of economy the nation uses.
Free Market (section 2)
Command (section 3)
Mixed (section 4)

4. These goals sometimes conflict
Economic Goals
Economic Efficiency
Economic Freedom
Economic Security
Economic Equity
Economic Growth
These goals sometimes conflict

5. Assignment: Define: Economic System Factor Payment Profit Safety Net
Standard of Living
Innovation
Traditional Economy