Economic Systems

Today's terms Are

• laissez-faire
• subsidy
• 3 basic economic questions
• innovation

Laissez-faire
is the belief and practice of minimizing government involvement in the market

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Subsidy
is a payment from the government to a private party to cover some, not all, of the cost of a good or service

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The 3 basic Economic Questions Are

• WHAT good or service to produce
• FOR WHOM to produce the good or service
• HOW to produce the good or service

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Innovation is the
creation and improvement of existing and new goods and services

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