Chapter #3 Section #3 Resources and world trade. Economic Systems Used Around the World

Traditional Economy Decisions based on customs passed down through generations Use bartering or trading and not necessarily money to get the things that you need

Command Economy Government leaders make all of the decisions about 1. What to produce, 2. How to produce it, and 3. For whom to produce it Individuals have little to no say in goods and services produced and provided Government sets all prices and profit levels Government decides where and when you work as well as what you will get paid The Government owns all means of production

Market Economy Individuals make all the decisions on what and how to produce. Individuals own their own businesses and means of production The principal of “Supply and Demand” set the price of goods People have free choice of goods and services to choose from

Mixed Economy Uses all aspects of the Market Economy Some government regulations on businesses and trade Most popular style used world wide