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University Chadli Bendjedid TAREF Department Economy Level Second Year Instructor Messabhia Lecture Two ECONOMIC SYSTEMS The Word System Defined Set

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University Of Chadli Bendjedid EL TAREF Department Of Economy Level Second Year Instructor Ms Messabhia Lecture Two 1 ECONOMIC SYSTEMS The Word System Is Defined As A Set Of Things Working Together As Parts Of A Mechanism Or An Interconnecting Network What Do You Think An Economic System Means An Economic System Is A System Of Production Used By A Society To Produce And Distribute Goods And Services All Economic Systems Have Three Basic Questions To Ask What To Produce It How To Produce And In What Quantities And Who Receives The Output Of Production The Central Economic Problem Is To Reconcile The Conflict Between Peoples Unlimited Demands With Societys Ability To Produce Goods And Services There Are Two Basic Solutions To This Economic Problem Namely Free Markets And Central Planning With Respect To This Economic Systems

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