Who owns the factors of production and makes decisions? Free Market Command Economy Philosopher Adam Smith The Wealth of Nations Karl Marx The Communist Manifesto & Das Kapital Basic Idea Who owns the factors of production and makes decisions? Economic Efficiency Economic Freedom Economic Security and Predictability Economic Equality Economic Growth and Innovation Political System

Who owns the factors of production and makes decisions? Free Market Command Economy Philosopher Adam Smith The Wealth of Nations Karl Marx The Communist Manifesto & Das Kapital Basic Idea Markets exist because no one is self-sufficient. People have to specialize which creates a need for markets so people can sell and buy what they want and need. The central government is in command of the economy, making decisions about what to produce, how to produce it, and who gets to consume it. Who owns the factors of production and makes decisions? Economic Efficiency Economic Freedom Economic Security and Predictability Economic Equality Economic Growth and Innovation Political System

Who owns the factors of production and makes decisions? Free Market Command Economy Philosopher Adam Smith The Wealth of Nations Karl Marx The Communist Manifesto & Das Kapital Basic Idea Markets exist because no one is self-sufficient. People have to specialize which creates a need for markets so people can sell and buy what they want and need. The central government is in command of the economy, making decisions about what to produce, how to produce it, and who gets to consume it. Who owns the factors of production and makes decisions? Individuals The Central Government Economic Efficiency Economic Freedom Economic Security and Predictability Economic Equality Economic Growth and Innovation Political System

Who owns the factors of production and makes decisions? Free Market Command Economy Philosopher Adam Smith The Wealth of Nations Karl Marx The Communist Manifesto & Das Kapital Basic Idea Markets exist because no one is self-sufficient. People have to specialize which creates a need for markets so people can sell and buy what they want and need. The central government is in command of the economy, making decisions about what to produce, how to produce it, and who gets to consume it. Who owns the factors of production and makes decisions? Individuals The Central Government Economic Efficiency Economic Freedom Economic Security and Predictability Economic Equality Economic Growth and Innovation Responds quickly to changing conditions, produces what is wanted. Bureaucratic decision making takes time, lacks flexibility. Political System

Who owns the factors of production and makes decisions? Free Market Command Economy Philosopher Adam Smith The Wealth of Nations Karl Marx The Communist Manifesto & Das Kapital Basic Idea Markets exist because no one is self-sufficient. People have to specialize which creates a need for markets so people can sell and buy what they want and need. The central government is in command of the economy, making decisions about what to produce, how to produce it, and who gets to consume it. Who owns the factors of production and makes decisions? Individuals The Central Government Economic Efficiency Economic Freedom Economic Security and Predictability Economic Equality Economic Growth and Innovation Responds quickly to changing conditions, produces what is wanted. Bureaucratic decision making takes time, lacks flexibility. Highest degree of any system Government makes all decisions, Consumers lack say in all decisions Political System

Who owns the factors of production and makes decisions? Free Market Command Economy Philosopher Adam Smith The Wealth of Nations Karl Marx The Communist Manifesto & Das Kapital Basic Idea Markets exist because no one is self-sufficient. People have to specialize which creates a need for markets so people can sell and buy what they want and need. The central government is in command of the economy, making decisions about what to produce, how to produce it, and who gets to consume it. Who owns the factors of production and makes decisions? Individuals The Central Government Economic Efficiency Economic Freedom Economic Security and Predictability Economic Equality Economic Growth and Innovation Responds quickly to changing conditions, produces what is wanted. Bureaucratic decision making takes time, lacks flexibility. Highest degree of any system Government makes all decisions, Consumers lack say in all decisions No “safety net” Government provides everyone with their basic needs Political System

Who owns the factors of production and makes decisions? Free Market Command Economy Philosopher Adam Smith The Wealth of Nations Karl Marx The Communist Manifesto & Das Kapital Basic Idea Markets exist because no one is self-sufficient. People have to specialize which creates a need for markets so people can sell and buy what they want and need. The central government is in command of the economy, making decisions about what to produce, how to produce it, and who gets to consume it. Who owns the factors of production and makes decisions? Individuals The Central Government Economic Efficiency Economic Freedom Economic Security and Predictability Economic Equality Economic Growth and Innovation Responds quickly to changing conditions, produces what is wanted. Bureaucratic decision making takes time, lacks flexibility. Highest degree of any system Government makes all decisions, Consumers lack say in all decisions No “safety net” Government provides basic needs Self-interest Wealth is distributed throughout society. Political System

Who owns the factors of production and makes decisions? Free Market Command Economy Philosopher Adam Smith The Wealth of Nations Karl Marx The Communist Manifesto & Das Kapital Basic Idea Markets exist because no one is self-sufficient. People have to specialize which creates a need for markets so people can sell and buy what they want and need. The central government is in command of the economy, making decisions about what to produce, how to produce it, and who gets to consume it. Who owns the factors of production and makes decisions? Individuals The Central Government Economic Efficiency Economic Freedom Economic Security and Predictability Economic Equality Economic Growth and Innovation Responds quickly to changing conditions, produces what is wanted. Bureaucratic decision making takes time, lacks flexibility. Highest degree of any system Government makes all decisions, Consumers lack say in all decisions No “safety net” Government provides basic needs Self-interest Distribute wealth evenly throughout society. Encourages entrepreneurs to seek new ideas and innovations. Does not reward innovation and actively discourages change. Political System

Who owns the factors of production and makes decisions? Free Market Command Economy Philosopher Adam Smith The Wealth of Nations Karl Marx The Communist Manifesto & Das Kapital Basic Idea Markets exist because no one is self-sufficient. People have to specialize which creates a need for markets so people can sell and buy what they want and need. The central government is in command of the economy, making decisions about what to produce, how to produce it, and who gets to consume it. Who owns the factors of production and makes decisions? Individuals The Central Government Economic Efficiency Economic Freedom Economic Security and Predictability Economic Equality Economic Growth and Innovation Responds quickly to changing conditions, produces what is wanted. Bureaucratic decision making takes time, lacks flexibility. Highest degree of any system Government makes all decisions, Consumers lack say in all decisions No “safety net” Government provides basic needs Self-interest Encourages entrepreneurs to seek new ideas and innovations. Distribute wealth evenly throughout society. Does not reward innovation and actively discourages change. Political System Usually associated with a democracy Usually associated with communism