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Economic Systems final

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Economic Systems final
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  • The Great Big Book of Economy
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  • Mc Donalds
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  • Capitalism is a system where people get to decide what they want to make and can own their own property. People that buy things are called consumers. People who make things and sell them are called producers. This system favors the pursuit of money over almost everything else. In capitalism the government steps back and relaxes mostly letting people do what they do.
  • Supply and demand are what create prices. Supply is the amount of things there are. Demand is how much people want the thing.
  • In a traditional economy people only make what they need. This includes making their own food with farming and their own clothes by getting livestock.
  • In a communist economy the government controls the economy saying what things can be made and services will be given. In this economy everyone is equal and the government does plans.
  • THE END!
  • In a socialist economy all the big business is controlled by the government. However people can still own small businesses and sell and make what they want.
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