resources are scarce = Economies address 3 economic questions: What goods and services should be produced? How should these good and services be produced? For Whom to produce these goods and services?

Traditional Economy Definition: Relies on habit, custom, or ritual to decide the three economic questions. Defining Features: Little room for innovation or change Revolves around the family Work divided along gender lines Small and close communities Remain stagnant, resisting change (both on Individual and Community Level) Slow to adopt new technology or radical new ideas Low standard of living

Market Economy Definition: Decisions are made by individuals and are based on exchange, or trade. Also called: FREE MARKET/Capitalism Details: Choices made by individuals determine what gets made and how (and who consumers the goods and services produced) https://www.youtube.com/watch?v=tzXzkAs_cf0 START @ 2:10!

https://www.youtube.co m/watch?v=oUbpGmR1- QM Visuals @ 2:30

Command Economy The central government alone decides how to answer all three key economic questions. Also Called: centrally planned economies Details: Central authority is in command of the economy

Mixed Economy Definition: Market-based economic systems in which the government plays a limited role Details: Exist because no one is self-sufficient Markets allow us to exchange the things we have for the things we want Establishes goods and services that markets cannot so efficiently or fairly Balance between control and freedom

CRASH COURSE W/ MR. CLIFFORD START @ 1:00- 5:40 https://www.youtube.com/watch?v=B43YEW2FvDs

WERE THE SMURFS COMMUNIST? https://www.youtube.com/watch?v=Qra0hlO6hZk