Economic Systems and Key Concepts

Economics Overview Three Major Economic Decisions What to produce - determining which

goods and services should be made available How to produce - choosing the methods and resources used

in production For whom to produce - deciding who will receive the goods and services

Four General Economic Systems Traditional economy - based on customs, traditions,

and beliefs passed down through generations Command economy - government controls all economic decisions

and resource allocation Market economy - individuals and businesses make decisions based

on supply and demand Mixed economy - combines elements of both market and command economies

Economic Terms Definitions Producer - person or organization that creates goods or services