1. Economics

2. Types of Economies There are three types of economies Traditional
Command
Market
mixed

3. Traditional Economy
an economy where decisions on protection and consumption are based upon customs, beliefs, rituals, and habits
use only what resources they have
traditional economies rarely exist today. Usually in underdeveloped nations (Southern Mexico, South America, and Africa)

5. Market Economy
an economy in which decision on production and consumption are made by individuals acting as buyers and sellers

6. Command Economy
an economy in which all decisions on production and consumption are made by a central government
common in dictatorships
more stable, least affected by financial downturns and inflation
opposite of Market economy
emphasizes collective benefits vs. a single person benefitting
Examples: China, North Korea, Soviet Union, Cuba

11. How does the government regulate trade?
Purpose
Effect on Cost
Tariffs
Quotas
Blockades
Embargos