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Economic Systems Challenge

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Economic Systems Challenge

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Key terms in economic systems

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Economic Systems Challenge
 

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Economic Systems ChallengeOnline version

Key terms in economic systems

by Ronnie Smith
1

An economic system explains how a society decides what to produce , how to produce it , and for whom . In , private firms respond to prices and profits in a largely competitive , influencing investment and innovation . Socialism places more planning and public ownership under oversight to try to ensure fair allocation of resources . A command economy concentrates decision making in a central authority , while a market economy relies on prices to coordinate choices . and shape both consumers and producers in every system .

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