Back Economic Systems Economic systems are organized sets of procedures used within communities or between communities to govern the production and distribution of goods and services. A mixed economy combines elements of these systems. The economy of the United States is considered a market economy though aspects of a command economy influence major segments of the nation's economy such as transportation. Back Scarcity Items are scarce when the supply of a good or service does not satisfy the demand. Scarcity exists because human wants for goods and services exceed the quantity of goods and services that can be produced using all available resources.
Few communities are self-sufficient.
Residents in communities in areas with rich farm land may devote their time to market gardening. Down the road in an industrialized area, residents may not have land to raise gardens. As a result, they depend on each other for goods and services. A system of interdependence results, based in free exchange. When one crop is scarce, residents may grow more of another crop to satisfy the demand.