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This PowerPoint Lesson and Student Guided Note Packet Combo help your students to understand the Decision Making process in Economics. ORGANIZING YOUR THOUGHTS Use the cause-and-effect diagram below to help you take notes as you read the summaries that follow. CREATING A CUSTOMIZED FILE Students use the reading to help them answer basic questions and complete a chart about making economic choices. economy economic system in which the allocation of scarce resources and other economic activities are based on ritual, habit, or custom Student Web Activity Visit the Economics: Principles and Practices Web site at glencoe.com and click on Chapter 2—Student Web Activities for an activity on the economies of traditional societies. A. It helps to think of our economy as being made up of two broad groups—producers and consumers. Production possibilities consist of four factors. 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