RESOURCES ARE SCARCE ECONOMIES ADDRESS 3 ECONOMIC QUESTIONS

RESOURCES ARE SCARCE = ECONOMIES ADDRESS 3 ECONOMIC QUESTIONS: 1. What goods and services should be produced? 2. How should these good and services be produced? 3. For Whom to produce these goods and services?

TRADITIONAL ECONOMY Definition: • Relies on habit, custom, or ritual to decide three economic questions. • Defining Features: • Little room for innovation or change • Revolves around the family • Work divided along gender lines • Small and close communities • Remain stagnant, resisting change (both on Individual and Community Level) • Slow to adopt new technology or radical new ideas • Low standard of living

MARKET ECONOMY • Definition: • Decisions are made by individuals and are based on exchange, or trade. • Also called: FREE MARKET/Capitalism • Details: • Choices made by individuals determine what gets made and how (and who consumers the goods and services produced) • https: //www. youtube. com/watch? v=tz. Xzk. As_cf 0 START @ 2: 10!

• https: //www. youtube. co m/watch? v=o. Ubp. Gm. R 1 QM • Visuals @ 2: 30

COMMAND ECONOMY • The central government alone decides how to answer all three key economic questions. • Also Called: centrally planned economies • Details: • Central authority is in command of the economy

MIXED ECONOMY • Definition: • Market-based economic systems in which the government plays a limited role • Details: • Exist because no one is self-sufficient • Markets allow us to exchange things we have for the things we want • Establishes goods and services that markets cannot so efficiently or fairly • Balance between control and freedom

CRASH COURSE W/ MR. CLIFFORD START @ 1: 00 - 5: 40 • https: //www. youtube. com/watch? v=B 43 YEW 2 Fv. Ds

WERE THE SMURFS COMMUNIST? • https: //www. youtube. com/watch? v=Qra 0 hl. O 6 h. Zk