How many basic types of economic systems are there? Name the economic systems. Which economic system do most textbooks say is the most common throughout the world?

How many basic types of economic systems are there? 3 Name the economic systems. Which economic system do most textbooks say is the most common throughout the world?

How many basic types of economic systems are there? 3 Name the economic systems. Traditional, Command, Market Which economic system do most textbooks say is the most common throughout the world?

Most economic decisions based on custom and habit (as things were done in the past) Many found in rural areas People depend on members of extended family Work is often farming, herding animals, simple crafts or trades Very little money changes hands Bartering and trading goods and services replaces money No SW Asia country has a primarily traditional economy

More centralized economy Government planning groups make most of the basic economic decisions for the workers Decides which goods and services will be produced Decides on prices of goods and wages for workers No individual can start new business on their own Government decides what to make, who owns the place where goods are made, what jobs the workers will do and how and where the goods produced will be sold

A society’s economic decisions are made by individuals who decide what to produce and what to buy Also called capitalism, free enterprise, or laissez- faire Many countries in Southwest Asia use a market economy

How many basic types of economic systems are there? 3 Name the economic systems. Traditional, Command, Market Which economic system do most textbooks say is the most common throughout the world? Mixed. Mixed is not an economic system but rather a blending of two different types of systems.

Nearly all modern countries have a mixed economy Generally a combination of market and command

Economic Systems Pure Market Pure Command

Economic Systems Pure Market Pure Command Iran 45% Saudi Arabia 64% Israel 68%

Economic Systems Pure Market Pure Command Nigeria 55% South Africa 64%

Economic Systems Pure Market Pure Command North Korea 2% India 54% Japan 73% China 53%

Israel Relatively small area Almost no natural resources Economy based on advanced technology

Saudi Arabia Located on the Arabian Peninsula it’s one of the largest countries in SW Asia Much is desert with rich oil reserves Can buy whatever they can’t produce King and advisors make most decisions about how and where to use oil profits Have invested much in technologies to produce goods they would not be able to do otherwise in a desert climate.

Iran Has great oil wealth A more mixed economy than Saudi Arabia in spite of government attempts to maintain control Iran’s command economy hasn’t been very efficient in recent years Many Iranians do not share in the oil wealth

Turkey Located in the northwestern part of the M. E. Istanbul – gateway between Europe and Asia Turkey has been part of ancient trade routes for thousands of years Least economic freedom Airlines, railroads, telephone and television controlled by government Government has been loosening their hold More private ownership has been allowed More laws enacted to protect business owners