GO # 14 Economic Concepts

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Scarcity   Resources  

Choice   Opportunity  Cost  

Price   Incentives  

Production   Consumption  

Supply   Demand  

Types of Economies

Every country must develop an economic system to determine how to use its limited productive resources. The key factor in detemrine the type of economy is the extent of _________________________. The type of economy a country has answer three basic questions.

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Tradiditonal Economy Free Market Economy

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Command Economy Mixed Economy

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No country relies exclusively on markets to deal with the economic problem of scarcity.