What and how many goods and services should be produced, how they should be produced, and who gets the goods and services that are produced.

​

​Economic Systems

goods and services are traded without exchanging money (barter)

Traditional

production of goods and services is determined by the demand from consumers (capitalism/demand)

Market

production of goods and services is determined by a central government, which usually owns the means of production.

Command

​3 Major Economic Systems

a combination of command and market economies provides goods and services so that all people will benefit

​

Mixed Economy

gathering of raw materials for a final product.

​​Primary Activities

adding value to materials by changing their form.

Secondary Activities

provide business or professional services in the economy

​​Tertiary Activities

provide information, management and research services by highly trained individuals.

Quaternary Activities

Industrialization, more technology and manufacturing

More developed

​Agriculture remains dominant, and exhibiting low socioeconomic development

​​Less Developed

Have moved from primarily agricultural activities to primarily manufacturing and industrial activities.

Newly Developed

​Country Development Levels

exchange of capital, labor, goods, and services across international borders or territories, involving the import and export of goods. In most countries, such trade represents a significant share of gross domestic product (GDP)

​​World Trade

Depending on what a country has they will either trade with another country, import goods, or if they have an abundance of a resource they could just export.

​Imports and Exports