1. ECONOMIC SYSTEMS

2. Traditional (barter) Major Features:
Based on customs, beliefs, and habits
Centered around agriculture
The exchange of goods or services for other goods or services (trade)
Examples: Early River Valley Civilizations

3. Feudal (manorial) Major Features:
All aspects of life were centered on the lord’s manor including peasant villages, a church, farmland, a mill, and the lord’s castle or manor house
Manors were self sufficient (limited trade with others societies)
Based on agriculture
land and services of loyalty were exchanged
Serfs became tied to the land
Examples: Medieval Europe

4. Mercantilist Major Features:
Policy of building a nation’s wealth by exporting more than it imports
Uses colonies for trade – as a source of raw materials and as markets to sell goods to
Examples: the British in India, the Spanish in Latin America

5. Capitalist (free market, laissez faire)
Major Features:
Based on supply & demand
Little or no gov’t control of economy (gov’t hands off)
Private ownership of property
Encourages competition
Entrepreneurs invest to make a profit
Examples: most European nations; India; Japan

6. Communist (command) Major Features: Gov’t plans the entire economy
Gov’t owns all the property & means of production
Gov’t makes all economic decisions
Examples: Stalin’s Russia; Mao’s China

7. Mixed Major Features: Combination of market & command economies
Market forces control consumer goods
Gov’t directs industry in needed areas
Examples: most nations fall into this category

8. Sample Multiple Choice Questions1 3 2 4