The three basic economic questions that must be addressed by every society are: What
goods and services shall be produced and in what quantities? How shall goods and services
be produced? For whom shall goods and services be produced?
The ways resources are used impact the economic, political, and historic aspects of life
throughout the world.
People have unlimited needs and wants which they must meet with limited resources.
Anation with limited natural resources must interact with other nations to secure its
In many areas of the world, improvement in life expectancy and health care have contributed
to rapid population growth.
Throughout the Eastern Hemisphere, there is great diversity in the standard of living.
Concepts such as scarcity, supply and demand, markets, opportunity costs, resources, productivity,
economic growth, and systems can be used to study the economies and economic
systems of the various nations of the Eastern Hemisphere.
The economic systems of the world have become an interdependent network.
Different economic systems have evolved to deal with economic decision making.
In traditional economies, decision making and problem solving are guided by the past.
In market economies, decisions regarding what is to be produced are based upon patterns of
In command economies, decisions regarding the control and use of the means of production
and distribution are planned by the government.
In many countries “mixed” economies have evolved to deal with economic decision
Nations have joined with one another in organizations which promote economic development
and growth. For example, the European Union was formed to promote free trade
and a common economic policy among its members.
As the economic systems of the global community have become more interdependent, decisions
made in one nation or region have implications for all regions.
Some of the nations of the Eastern Hemisphere play leadership roles in the global economy.
Many of the communist nations and former communist nations in the Eastern Hemisphere
are moving toward market economies.