EconomyA society has to have a way to support the people. A way to make, buy and sell goods and services to satisfy their needs and wants.

Economic development is used to describe the level of society.

Levels of economic development Less developed - high poverty, low life expectancy, low literacy, agricultural economy

Newly Industrialized - rising urbanization, decreasing dependence on agriculture

Highly Developed - low rates of poverty, high GDP, high literacy and life expectancy

Economic Systems

Free Enterprise - a market economy, free choice of what/where you will sell and free to set your own price, motivated by profit

Socialist system:

Government decides what/how much to produce

Politics plays a role in this, not profits

Communist System:an economy where businesses are owned by the govt

Govt owns and controls all resources

No freedom of choice/no profit motive