Presentation is loading. Please wait.

Presentation is loading. Please wait.

Economic Systems and Decision Making

Similar presentations


Presentation on theme: "Economic Systems and Decision Making"— Presentation transcript:

1 Economic Systems and Decision Making
Chapter 2

2 Economic Systems Traditional Economy
Allocation of resources stems from ritual, habit, or custom Strengths Everyone knows their role Weaknesses Discourages new ideas Lack of progress

3 Economic Systems Command Economy
Central authority makes economic decisions Strengths Capable of dramatic changes Weaknesses Doesn’t meet needs of consumers Lacks incentive Large bureaucracy Little flexibility New ideas discouraged

4 Economic Systems Market Economy
People and firms answer economic questions Strengths Adjusts to change gradually Individual freedom Decentralized decision making Variety of goods and services Consumer satisfaction Weaknesses Rewards only productive resources Must guard against market failures


Download ppt "Economic Systems and Decision Making"

Similar presentations


Ads by Google