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4 Types of Economic Systems Traditional Command Market Mixed
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EconomicsEconomicsI can explain the different types of economies and give solid examples of each.
4 Types of 4 Types of Economic SystemsEconomic Systems
Traditional Command Market Mixed
Traditional EconomyTraditional Economy Family or Community based economic
system that relies on custom and rituals to make its choices. (past down from one generation to the next)
Examples: Aborigines Amazon Tribe Third World Countries
The three worlds as they were separated during the Cold War era, each with its respective allies. First World: the United States and its allies. Second World: the Soviet Union and its allies. Third World: Non-aligned and neutral countries.
Command EconomyCommand Economy Government makes all the decisions Examples:
Cuba China Any Communist country or Dictatorship
Market EconomyMarket Economy Individual business owners make the
decisions based on consumer choices
Mixed EconomyMixed Economy Individuals and the government share the
decision-making process Means of production are mostly privately
owned but government guides and regulates the economy.
Example: USA
ConsumersConsumers
The people who buy and use products
Goods/ServicesGoods/Services Goods are products
that you buy. Services are the
things people do for others in exchange for money or something of value.
Supply/DemandSupply/Demand
Amount of each good or service available to consumers
The amount of good or service that consumers are willing to buy.
CompetitionCompetition
Opportunity CostOpportunity Cost Value of the next best choice
vs.
ScarcityScarcity The condition that exists when wants exceed
resources available to satisfy wants
MonopolyMonopoly When specific individuals or enterprise has
sufficient control over a particular product or service that determines which other individuals should have access to it
Resources Human Resources
Natural Resources
Capital Resources(Tools, machines, and factories used to produce goods.)