Types of economies

An Economy Refresher: An economy is an organized way a nation provides for its people. Remember that no economy is purely one thing; they are mixed.

Types of economies Name the three types of economies 1. 2. 3.

Market Economy In a pure market economy there is no government involvement. The market (business owners, businesses) is free to make their own decisions.

Command Economy in a pure command economy the government makes all economic decisions. They decide what products are needed and what products are made for a consumers purchase

Traditional Economy In a pure traditional economy communities use primitive tools and methods to harvest and hunt for food, often resulting in little economic growth. Traditional economies are often found in under developed regions with high levels of subsistence farming. (This usual takes place in countries that are just forming; The USA during the early 1900’s).

America’s Economy the United States constitutes a mixed economy (substantial market regulation, extensive government-funded research and development, Medicare), yet at the same time it is foundationally rooted in a market economy. Meaning business owners can make their own decisions on what to product and what to sell.

What does our government get involved in??? 1. 2. 3. 4. 5.

Assignment On a clean sheet of paper you are to explain in detail why you believe each economy makes sense. Use examples based on your knowledge of our economy. What you think government should and should not be involved in. what you think the citizens should be involved in or not involved in.