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Why Economic Systems Are Needed

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Why Economic Systems Are Needed

One reason why we need economic systems is because our wants are unlimited, but our resources are not. No country has enough resources to supply everything that its people need and want. One function of an economic system is to decide what can be produced, how much can be produced, and who can obtain what is produced.
Another reason why we need economic systems is because people in all economic systems are interdependent. We depend on others to get the things that we need. The economic system coordinates the activities of producers, consumers, and the government.

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