Economic Systems: Mixed & Traditional Economies Feb 24th, 2014

Economies that have elements of Mixed Economies Economies that have elements of Command Market Economies

Economic System Definition A mechanism which deals with the production, distribution and consumption of goods and services in a particular society

Essentially deals with how to distribute a society’s resources An Economy. . . Essentially deals with how to distribute a society’s resources Land Labor Capital

An Economy Must Answer the 3 Basic Questions What to produce? How to produce? For Whom to Produce?

Traditional Economies

Answers the 3 Basic Econ Questions by using. . . Habits Customs Rituals Religion/Spiritual Beliefs

Traditional Economies are Family-Centered The family is the foundation through which the economy is built around Boys tend to have the same occupation as their father Girls tend to follow what their mother does

Traditional economies are used by small and close-knit communities Typically. . . Traditional economies are used by small and close-knit communities They lack modern conveniences Have a lower standard of living Exist in 3rd World Countries. Think of tribes