Chapter 5 Review - The U.S. Economic System

the social science that examines how societies use scarce resources to produce and distribute goods and services that satisfy peoples' wants and needs.

Items we buy (shoes, pizza)

Provided by others (transportation, haircuts)

Things we need to live (food, basic clothing, shelter)

Not necessary, but desired (computer, latest Fashions)

Specialist in the field of economics

Economics on a national and global scale, decisions mad by government.

Economics decisions mad by individuals and businesses.

Is the way a society uses resources to satisfy its peoples's needs and wants.

An economic principle stating that because of limited resources, an economic system can not possibly produce all the goods and services that people want therefore, choice must be mad about how limited resources will be used. (vaccines, food, gas)