Traditional Market Economy Systems Command Mixed

Traditional Economy An economic system based on traditions, routines, and beliefs Usually a traditional product is made and sold or traded at open markets The people in the system are closely involved in the operation Roles are passed down through family members

Command Economy A system based on central control of trade and production A government decides what goods and services are produced May limit what jobs can be held Goods are given out by waiting in line or a reward system The government decides EVERYTHING about this type of economy including what is produced, how much, how, and where.

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Market Economy A system that is managed by the people It is based on supply and demand Businesses control how much they produce The people control how much they consume A balance of what businesses want to produce and what people want to consume is important in this economy

Mixed Economy This economy is based on a mixture of the other three Few countries have a pure economic system Most countries have a mixed economy Governments own some businesses/industries Private owners own the rest

Economy Info Page 9 Directions: Cut out Economy Descriptions and Glue in NB

Gross Domestic Product The total amount of goods and services that a country produces during a year It shows individual purchasing power It is useful in comparing levels of economic development

Words to Know Trade barriers – any restrictions that makes trade difficult or impossible Tariff – a tax on imported goods Quota – a proportional part or share Embargo – NO trade

Trade Barrier Detective Page 10 Directions: Cut out Trade Barrier Detective pockets, then glue them down Cut out descriptions and put in correct pocket