1. Traditional
Market
Economy Systems
Command
Mixed

2. Traditional Economy
An economic system based on traditions, routines, and beliefs
Usually a traditional product is made and sold or traded at open markets
The people in the system are closely involved in the operation
Roles are passed down through family members

5. Command Economy
A system based on central control of trade and production
A government decides what goods and services are produced
May limit what jobs can be held
Goods are given out by waiting in line or a reward system
The government decides EVERYTHING about this type of economy including what is produced, how much, how, and where.

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9. Market Economy A system that is managed by the people
It is based on supply and demand
Businesses control how much they produce
The people control how much they consume
A balance of what businesses want to produce and what people want to consume is important in this economy

10. Mixed Economy This economy is based on a mixture of the other three
Few countries have a pure economic system
Most countries have a mixed economy
Governments own some businesses/industries
Private owners own the rest

11. Economy Info Page 9 Directions:
Cut out Economy Descriptions and Glue in NB

12. Gross Domestic Product
The total amount of goods and services that a country produces during a year
It shows individual purchasing power
It is useful in comparing levels of economic development

13. Words to Know
Trade barriers – any restrictions that makes trade difficult or impossible
Tariff – a tax on imported goods
Quota – a proportional part or share
Embargo – NO trade

14. Trade Barrier Detective Page 10
Directions:
Cut out Trade Barrier Detective pockets, then glue them down
Cut out descriptions and put in correct pocket