1. Modern Economies

2. The Problem with Market Economies
Laissez faire is the doctrine that government generally should not interfere in the marketplace.
The economy runs itself
Market economies, with all their advantages, have certain drawbacks.
They will need help to keep stability

3. The Mixed Economy In a mixed economy:
The government purchases land, labor, and capital from households in the factor market
Purchases goods and services in the product market.

4. Comparing Mixed Economies
Economic systems are classified by the amount of government involvement.
Centrally Planned has lots of government intervention
Free Market (Free Enterprise) has very little if any government
The degree of government involvement in the economy varies among nations.

5. Label by Economy
Cuba
United States
Canada
China
Hong Kong
France