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Full cost accounting

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Chapter 24 Outline Economic Systems and Sustainability A. An economic system produces and distributes goods and services by using natural, human, and physical resources. 1. An economic system produces, distributes and consumes goods and services. 2. Three types of resources are used to produce goods and services, natural resources, human resources (labor and skills), and physical or manufactured resources (tools, machinery, etc) B. A purely free-market system is a theoretical ideal where buyers and sellers interact in markets without interference by government or other interference. 1. In the ideal, all economic decisions are governed by demand and supply and price.
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