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Before we move on
- Economics deals with how individuals and societies make choices to use limited resources to satisfy unlimited wants . Every choice involves an opportunity cost - giving up one option for another.
- Every economy faces three central questions - what to produce , how to produce , and for whom to produce - to decide how best to use scarce resources .
- Different systems answer these questions differently. Market economies rely on private decisions and on demand and supply , planned economies depend on government control , and mixed economies combine both.
