Types of Economies Ms. Deady TEKS 6.9B

Three Types of Economic Systems: Traditional Market Command

Traditional Economy Work is based on customs. Turn and Talk: What are “customs”? (30 Seconds) (hint: Look on page 119 to help you.)

Traditional Economy Customs are: practices routinely followed by a group of people. Examples: In a traditional economy, the way people hunt, fish, and tend to animals and crops are customary.

Traditional Economy They are RARE.

Traditional Economy They are RARE. You can find this type of economy in North America! The Inuit people of Canada

Command Economy Also known as: “centrally planned economy” Government controls the economy! They decide what goods and services to produce, how and how much to produce, and how goods and services are distributed. LOOK at your “Types of Industries” notes. What is a good? What is a service? Turn and Talk! – BE READY TO SHARE OUT!

Command Economy Also known as: “centrally planned economy” Government controls the economy! They decide what goods and services to produce, how and how much to produce, and how goods and services are distributed.

Market Economy Also known as (AKA): “Free Enterprise Economy”. Unlike the Traditional Economy, the Market Economy is the MOST COMMON! Based on PRIVATE ownership, free trade, and competition. Q: Who is in CONTROL of a Market/Free Enterprise Economy? A. Government B. Government owns basic resources; the rest are privately owned C. Individuals and Businesses

Market Economy Also known as (AKA): “Free Enterprise Economy”. Unlike the Traditional Economy, the Market Economy is the MOST COMMON! Based on PRIVATE ownership, free trade, and competition.

Market Economy THE UNITED STATES OF AMERICA (WHERE WE LIVE!!!) HAS A MARKET/FREE ENTERPRISE ECONOMY!

D.O.L. Which economy is the most common? Which economy is the most rare? Who is in control of a command economy? What is another name for a market economy? 5. Individuals and businesses are in charge in which type of economy?