ITB: 2-6 Compare and Contrast Types of Economic Systems

Front

Economics: The study of how individuals and societies make decisions about resources.

Back

The study of how individuals and societies make decisions about resources.

Front

Three basic questions for societies:

Back

What, How, For Whom

Front

Economic system:

Back

Determines how goods & services are produced & distributed.

Front

Why is an economic system needed?

Back

To make hard decisions about resource distribution.

Front

Scarcity:

Back

People's wants exceed available resources.

Front

Why do we depend on one another?

Back

To create mutual dependence

Front

Traditional economic system:

Back

Relies on cultural customs and bartering.

Front

Centrally planned economic system?

Back

Production determined by a dominant centralized authority.

Front

Market economic system:

Back

Production determined by supply and demand.

Front

Mixed economic system:

Back

Combines elements of capitalism and socialism.