Understanding Economic Systems

Read this explanation of the United States economy. American workers are considered some of the most productive in the world. Productivity is the final output after you have considered the hours worked. Productivity in this country has grown because technology has lowered the cost of producing goods and services.

How Business and Economics Work

Concept Check

  1. What is economics, and how can you benefit from understanding basic economic concepts?
  2. Compare and contrast the world’s major economic systems. Why is capitalism growing, communism declining, and socialism still popular?
  3. What is the difference between macroeconomics and microeconomics?