Economic Systems

Types of Economic Systems Free Enterprise (Market) – an economy that allows business owners to compete in the market with little government interference. The means of production are mostly privately owned and operated for a profit. Command – The government makes decisions about what to produce, who can buy and sell goods and what price they are sold at. Traditional (Subsistence) – system in which traditions, customs, and beliefs shape the goods and the products the society creates. Countries that use this type of economic system are often rural and farm-based.

Command Economy Profits Demands Profits

Traditional Economy

Market Economy Trade Trade