Economic System

Economic system are the means by which countries and governments distribution,resources,trade goods and services, they are used to control the five factors of production,including labor,capital , entrepreneurs,physical resources and information resources.Economic systems and an important part of any culture. Every society (culture) must answer the basic economic question: #What to produce #How to produce it #Who will get what is produced #Cultural influences on the economic system # Word view of the culture. # Technological level of the culture. # Political structure of the culture. # Non cultural influences-🔘 Relative location & accessibility🔘Topography & climate🔘 Resources available from the environment 🔘 Factors of production in all economic system ➡️ ⏺ Land-real estate and natural resources-raw materials ⏺ Labor-mental and physical efforts applied to land and capital to facilitate production.⏺ Management or entrepreneurship-that segment of labor which organizes land,capital and the order segment of labor to produce goods and services ⏺ Capital- the tools and facilities need for production.