1. { Economic Systems Notes

2.  EVERY nation faces scarcity  Therefore they must make economic choices  The 3 Economic Questions  What goods & services will be produced?  How will these goods & services be produced?  What needs and wants will be satisfied with the goods and services produced? The 3 Economic Questions

3. What to produce? Based on that country’s resources That that country feels is important How to produce? Choose the BEST way to use their resources May be privately controlled or government controll. What needs/wants will be satisfied? Unlimited Decision makers must decide the most critical needs and wants And the answer is…

4.  Economic system – the method a country uses to answer the 3 economic questions. 1. Command Economy 2. Market Economy 3. Traditional Economy 4. Mixed Economy Types of Economic Systems