WORLD CIVILIZATION

Detailed explanation-1: -Key Takeaways. An economy is a system of inter-related production and consumption activities that ultimately determine the allocation of resources within a group. The production and consumption of goods and services as a whole fulfill the needs of those living and operating within it.

Detailed explanation-2: -Economic systems are the means by which countries and governments distribute resources and trade goods and services. They are used to control the five factors of production, including: labor, capital, entrepreneurs, physical resources and information resources.

Detailed explanation-3: -The way a nation uses its resources to fulfill needs and wants is called its economic system.

Detailed explanation-4: -There are three main types of economies: free market, command, and mixed. The chart below compares free-market and command economies; mixed economies are a combination of the two.

Detailed explanation-5: -Economic systems can be categorized into four main types: traditional economies, command economies, mixed economies, and market economies.