*We Live in A World Of Scarcity and Trade-Offs.
-If more of one particular item is produced, then less of something else will be produced.
Ex- if the government decided to build new roads, then fewer resources are available to maintain national parks. *After Deciding What To Produce, Economic Systems Must Then Decide How Those Goods and Services Will Be Produced.
-A decision must be made as to how the combination of available inputs will get the job done for the least cost.
Ex-will more laborers be hired? will more skilled or unskilled laborers do the work? Will capital goods be used to manufacture the products, thereby reducing the number of laborers needed?
*After Goods or Services Are Produced, The Type Of Economic System Under Which People Live Determines How They Will Be Distributed Among Its Members.
-In the United States they are distributed to individuals and businesses through a price system. Other economies may distribute products through majority rule, a lottery, on a first-come-first-serve basis or a variety of other ways.
Ex- Who receives new cars, who benefits from a new city school?

Your parents will teach you things that they were taught as a child and you will follow in there footsteps and as will your children and their children after.

Advantages:the speed with which resources can be rerouted.
-Ex; if war is likely, central planning agency can halt all manufacturing of civilian goods and channel the factors of production into making strictly military goods.
Disadvantages: Lack of consumer choices, because the government sets workers salaries, there is no reason to work efficiently or smartly.