1. Types of Economies
Capitalism
Socialism
Communism (Command)

2. Capitalism Also called “Market Economy”
Individuals determine product, demand, supply, and price
Low taxation and welfare
Government is “hands off” of business (but often governments regulate some parts of businesses)
Called “Free Enterprise System”
Example: United States

3. Socialism Government controls half of the businesses
Moderate taxation and welfare
Known as democratic socialism
Mixed economy
Example: United Kingdom

4. Communism Also called “Command Economy”
Government controls all business
100% taxation and welfare
Example: China

5. Traditional People meet their needs on the basis of their customs
Same family does the same work for generations
Example: some African countries