Question

1. Compare and contrast centrally planned economies and free market economies. 2. Using examples of land, labor, and capital, explain why economists believe that all goods and services are scarce.

Answer 1

1. A free market economy is an economy which the government plays a small role in. A centrally planned economy is quite the opposite with the government has control over the production of goods and the land there produced on.

2. because our needs and wants are unlimited and always greater than our resource supply; goods and services are made from resources that are scarce.

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