Traditional economic systems often rely on barter, where goods and services are directly exchanged for other goods and services, without the use of money.

In a command economy, the government makes the decisions about what goods and services to produce, how to produce them, and how to distribute them.

The primary goal of a market economy is profit maximization, where businesses aim to generate as much profit as possible through the sale of goods and services.

Mixed economic systems combine elements of both command and market economies, with the government playing a role in certain sectors while the private sector operates in others.

The main function of a central bank is to regulate the money supply in the economy, influencing interest rates and overall economic conditions.

Economic inequality encompasses various forms, including income inequality (differences in earnings), wealth inequality (differences in assets), and gender inequality (differences in economic opportunities and outcomes between men and women).

Economic scarcity refers to the limited availability of resources in relation to unlimited wants, necessitating the allocation of resources among competing uses.

Subsistence economies are characterized by the production of goods and services primarily for local consumption, with limited trade and specialization.

Gross domestic product (GDP) measures the total value of goods and services produced within the borders of a country over a specific period.

Economic growth can be classified into extensive growth (increasing the quantity of inputs), intensive growth (increasing the productivity of inputs), and balanced growth (increasing all inputs and productivity proportionally).

Production refers to the process of transforming raw materials and intermediate goods into finished goods and services.

Developed economies are characterized by high levels of industrialization, advanced technology, and high per capita income.

Distribution refers to the process of moving goods and services from producers to consumers, involving transportation, warehousing, and retailing.

Developing economies are characterized by low levels of industrialization, limited access to technology, and low per capita income.

Consumption refers to the process of using goods and services to satisfy human wants and needs.