Ap Human Geography Chapter 9 Study Guide

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• Economic System – A nation’s system for allocating its resources among its citizens, both individuals and organizations – Factors of Production – Land – Labour – Capital – Entrepreneurs – Physical resources – Information resources There are basically four types of economic systems: 1) Market economy- An economic system in which individuals own and operate different factions of production. Examples: Free Enterprise & Capitalism Individual producers must figure out how to plan, organise and coordinate the production of products and services. In a market economy, resources are allocated through individual decision making. In a free market country, people can own their business and property and they can also buy services for private