A production possibilities frontier is bowed outward when the more resources the economy uses to produce one good, the fewer resources it has available to produce the other good.
An economy is the biggest set of inter-related production, consumption, and exchange activities that aid in determining how scarce resources are allocated. The production, consumption, and distribution of goods and services are used to fulfill the needs of those living and operating within the economy, which is also referred to as an economic system. The economy of a particular region or country is governed by its culture, laws, history, and geography, among other factors, and it evolves due to the choices and actions of the participants. For this reason, no two economies are similar.
Market-based economy allow individuals and businesses to freely exchange goods through the market, according to supply and demand.
"Traditional economy system- The traditional economy system is based on goods, services, and work, all of which follow certain established trends. It relies a lot on people, and there is very little division of labor or specialization. Command economy system- In a command system, there is a dominant centralized authority usually the government that controls a significant portion of the economy structure. Market economic system Market economic systems are based on the concept of free markets. In other words, there is very little government interference. The government exercises little control over resources, and it does not interfere with important segments of the economy."
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