Traditional EconomyFound in agricultural communities, goods are usually bartered

MercantilismEconomic system where a country has colonies to provide raw materials. The government benefits the most, not individuals

Laissez faire“Hands off”—the government has absolutely no control over the market (pure capitalism)

Command economyThe market is completely controlled by the government (pure communism)

Mixed economyThe government has some control over the market. In some countries the government has a lot of control, in others the government has much less.

Economics Vocabulary

ScarcityI don’t have something I need, so I am compelled to get it

MonopolyOne company has complete control over a market, no competition

Adam SmithFounder of capitalism, wrote “The Wealth of Nations”

Karl MarxFounder of communism., wrote “The Communist Manifesto” and “Das Kapital”

Economics Vocabulary