MYP Individuals & Societies Economic Systems Notes

Why Do Economic Systems Exist?

1. Every society must answer three connected questions:
   1. What to produce (which goods and services)?
   2. How to produce (which methods, technology, and organization)?
   3. For whom to produce (who receives the output, and on what basis)?
2. These questions matter because scarcity (limited resources) forces trade-offs.
3. So, even if a society has "a lot" of a resource, it is never unlimited.

What Are The Two Broad Ways to Run an Economy?

Many real economies are mixed, but a core distinction is how decisions are made.

What Are Command Economies?

Three key components are slavery, feudalism, and fommunism

Slavery: production through coercion

1. In slavery, individuals are deprived of freedom and forced to work by someone who has power granted (or tolerated) by society.