Economic Systems (03/22)

Economic Systems

Traditional, Command & Market

Open Ended

What is scarcity and why is it a problem?

Scarcity

• Scarcity is the problem of economics.

• Scarcity means that all natural resources are limited!

• No country has everything that it needs!

Scarcity

• Scarcity es el problema de la economía.

• Scarcity significa que todos los recursos naturales son limitados!

• ¡Ningún país tiene todo lo que necesita!

Goods & Services

• Goods are things that you can buy.

• Los bienes son cosas que puedes comprar.

Goods & Services

• A service is an action done for you or a system that provides a need.

• Un servicio es una acción realizada por usted o un sistema que proporciona una necesidad.

Economic System

• An economic system is a country’s plan for how to use its limited resources to produce goods and services.

• Un sistema económico es el plan de un país sobre cómo utilizar sus recursos limitados para producir bienes y servicios.

Open Ended

Why do countries need an economic system to produce goods and services?

Every country has to decide...

Cada país tiene que decidir...

• what to produce?

• que producir?

• how to produce?

• como producir?

• for whom to produce?

• para quien producir?

Multiple Select

What are the 3 economic questions that every country must answer?

• what to produce

• how to produce

• why to produce

• for whom to produce

There are 3 economic systems...

• Traditional!

• Command!

• Market!