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Economic concepts: (universityNow: types of economic system// unow academics)
Scarcity: distribute goods among the population in the society. Why?Resources in the world are limited and they have to satidfy needs of the population, and those needs are limited. Wants are unlimited
Economic sysstems will solve the problem of scarcity: 4 types
Traditional economy: based on culture and rituals, and is fcoused on the community as a whole
Command economy: relies on the government to make all economic decisioms, thats communism and socialism
Market economy (=capitalism, free market, liberalism, market economy, adam smith): driven by consumers; whose decisions determine how the industries and financial markets will operate
Mixed economy (all countries have it): utilizes limited government involvement while also applying free market concepts
GDP Formula
consumption+investment+government spending (all the money of our taxes) + (exports-imports)
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