2. Economics The science that deals with the PRODUCTION, CONSUMPTION and DISTRIBUTION of goods and services. What is it? TO MAKE TO TAKE IN TO MAKE AVAILABLE

3. The overall economic situation in which people live. Standard of Living What is it? Quantity of goods & services available Poverty rate Education & Health Care

4. The basic facilities, services & installations needed for the functioning of a community or society Infrastructure What is it? Transportation & Communication Water & Power Schools Post Offices & Prisons

5. Productive Capacity The ability of an ecosystem to produce the raw materials necessary for economic activities. What is it? This includes all renewable resources found both on & below the surface of the earth

6. The oldest & most basic economy Trade is the main source of exchange No technology No currency Does not change by generation Hunting & Gathering Rural Africa, Asia & S. America. Traditional Economy What is it? To Barter

7. An item’s price is determined by supply & demand Private ownership Competition is the ruling force Western Europe, N. America, Australia Known as Capitalism Market Economy What is it?

8. Public (Gov’t) ownership Gov’t determines the supply. Gov’t sets prices. Emphasis placed on collective cooperation & equality Emphasis placed on “what’s good for society” Set up for farms & industries China, Cuba, N. Korea, former USSR. Known as Communism Command Economy What is it?

9. “Mixes” the elements of command & market economies. Public & Private Ownership Public Ownership of Infrastructure Private ownership of mercantiles Western & Southern Europe Known as Socialism Mixed Economy