Types of Economies

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Traditional Economies

Command Economies

Market Economies

Mixed Economies

Four Types of Economics

Traditional Economies

Traditional economies are found in rural, non-developed

countries

Traditional Economies

Some parts of Asia, Africa, South

America and the Middle East have

traditional economies

Traditional Economies

Customs govern the economic

decisions that are made (traditions)

Traditional Economies

Advanced-technology is not

used in traditional economies.

Traditional Economies

Farming, hunting and gathering are done the same way as the generations before

Traditional Economies

Economic activities are usually centered toward the family

or ethnic unit

Traditional Economies

Men and Women are given different economic roles and

tasks

Traditional Economies

Command EconomiesThe government or other

central authority makes decisions and

determines how resources will be used

Command Economies

Change can occur relatively

easily

Command Economies

There is little individual freedom

Command Economies

There is no competition

Command Economies

Businesses are not run to

make a profit

Command Economies

Consumers have few choices in

the market place

Command Economies

Factories are concerned with

quotas

Command Economies

Shortages are common because of poorly run factories

and farms

Command Economies

The government dictates the job in which you work

Command Economies

The government sets the prices of

goods and services

Command Economies

Examples of command economies : Cuba,

North Korea and the People’s Republic of

China

Command Economies

Market Economies

Resources are owned and

controlled by individuals

Market Economies

Economic decisions are made by

individuals competing to earn profits

Market Economies

Individual freedom is considered

very important

Market Economies

Economic decisions are made by the

basic principles of supply and

demand

Market Economies

Profit is the motive for increasing

work rather than quotas

Market Economies

Mixed Economies

Government and individuals share

the decision making process

Mixed Economies

Government guides and regulates

production of goods and services offered

Mixed Economies

Individuals own the means of production

Mixed Economies

Government Protects consumers and

workers from unfair policies

Mixed Economies

Most effective economy for

providing goods and services

Four Types of Economics

¨ Traditional Economies¨ Command Economies¨ Market Economies¨ Mixed Economies

Review

Traditional Economies

Command Economies

Market Economies

Mixed Economies