What is an Economy?
An economy, or economic system, is the organizational way a nation provides for the needs and wants of its people. A nation chooses how to use its resources to produce and distribute goods and services. Countries with different economic systems have different approaches when making choices. A country’s resources determine economic activities, such as manufacturing, buying, selling, transporting, and investing. Broad categories of resources that are common to all nations affect how business is done across the world.Key Terms:
Economy
Resources
Factors of Production
Infrastructure
Entrepreneurship
Scarcity
Traditional Economy
Market Economy
Command Economy
Objectives
*What is meant by the term economy
*The factors of production
*The concept of scarcity
*The difference between a traditional, a market, a command, and a mixed economy