ECONOMICS
Lesson 2 Economic Systems, Production and Government

Lesson 2 Economic Systems, Production and Government - #2...

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#2: Economic Systems, Production and Government Economic System: Set of laws, institutions and common practices that help a nation determine how to use its scarce resources to help satisfy the wants and needs of its people. The three types of economic systems are: Traditional Economic System Command Economic System Market Economic System Mixed Economy: An economic system, such as Canada’s, that contains elements of market, traditional, and command systems. Most economies are mixed. The fundamental production questions: Because a society’s wants exceeds its available resources, decisions need to be made to use the resources wisely. What to produce? How to produce? For whom to produce? Characteristics of a Pure Market Economy: Private Property Rights: Right of individuals and corporations to own not only consumer goods, but capital goods (factories, machinery). Provides the basis for a pure market economy.
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