1. Economic Systems
1-3

2. Three Economic Questions
What goods and services will be produced?
How will the goods and services be produced?
What needs and wants will be satisfied with the goods and services produced?

3. What goods and services will be produced
A nation will use its natural resources
Countries should differentiate the goods produced

4. How to Produce
Each nation will decide how to use its resources to produce goods and services

5. What Needs and Wants to Satisfy
A country must decide which needs and wants are critical when deciding what to produce.

6. Economic System
A nation’s plan for answering the three economic questions.

7. Economic Systems Resources are owned and controlled by the government.
Command Economy
Market Economy
Resources are owned and controlled by the government.
Government answers all three economic questions
Resources are owned and controlled by the people of the country.

8. Economic Systems (Cont.)
Traditional Economy
Mixed Economies
Usually centered on meeting the basic needs of people
Goods are produced the way they always have been
Most countries
Combines elements of command and market economies

9. U.S. Economic System The U.S. falls under the Market Economy
Capitalism-private ownership of resources by individuals.
Free to Produce
Free to Buy
Free Enterprise
Private Enterprise

10. 4 Principles U.S. Economy is Based On
Private Property
Freedom of Choice
Profit-Heart of Private Enterprise System
Competition

11. Group Activity