Netherlands VWO 3 (onderbouw) Economics

1. How the economy works

The Dutch economic system (adopted, legal 2027) · Economic choices (adopted, legal 2027) · European cooperation

• The Problem of Choice: Scarcity and Opportunity Cost – Our wants are unlimited but resources like money, time, land and workers are limited. This is scarcity, and it forces us to choose. The value of the next best option we give up is the opportunity cost. Economists study how people and societies make these choices. Every society must decide what, how and for whom to produce. Market, planned and mixed economies answer these differently, and a welfare state makes sure basic needs of all are met.
• The European Union – The European Union (EU) is a group of 27 European countries that share some decisions and laws. It began in 1951, when six countries pooled coal and steel to make war between them impossible. It grew step by step into a single market where goods, people, services and money move freely. The Commission proposes laws, the Parliament and the Council pass them, and the Court of Justice makes sure they are applied. 21 members share the euro. The United Kingdom left in 2020.