BASIC PROBLEMS OF AN ECONOMY All countries, without exceptions, face the problem of scarcity. Their resources (natural productive resources, man-made capital goods, consumer goods, money and time etc.) areI limited and these resources have alternative uses.
The central economic problem How to produc What to Produce Central Economic What provisions are to be made Problemsfor economic growth? For whom to produce
Econom Capitalist IC Econom Socialisti Econom Mixed Economy
CAPITALIST ECONOMY Right to private property Absence of Government Interference Freedom of enterprise Profit motive Consumer Sovereignty Competition