Introduction to the Global Economy

In this lesson you learned that a nation’s economy will answer three basic questions:

• What will be produced?
• How will it be produced?
• For whom will it be produced?

You learned that in nations where citizens enjoy a lot of political freedom, they also enjoy a lot of economic freedom as well. The citizens of these nations are free to decide the answers to the basic economic questions. They enjoy the freedom to choose how to contribute to their nation’s economy, without much government involvement. You also learned that in nations where citizens have a very limited amount of political freedom, their economic freedoms are also very limited. The economy of a nation is highly influenced by the structure of its government.