Types of Economies Capitalism Socialism Communism (Command)

Capitalism Also called “Market Economy” Individuals determine product, demand, supply, and price Low taxation and welfare Government is “hands off” of business (but often governments regulate some parts of businesses) Called “Free Enterprise System” Example: United States

Socialism Government controls half of the businesses Moderate taxation and welfare Known as democratic socialism Mixed economy Example: United Kingdom

Communism Also called “Command Economy” Government controls all business 100% taxation and welfare Example: China

Traditional People meet their needs on the basis of their customs Same family does the same work for generations Example: some African countries