1. What will be produced? How will it be produced? Who will benefit?
Economic Systems
What will be produced?
How will it be produced?
Who will benefit?

2. Traditional Economies
Three questions are answered on the basis of customs, social patterns, religion, or other ideas handed down through time.

3. Terms associated with traditional economies:
Subsistence economy
Non-industrialized
Agricultural (rural)
Barter system
Dual economy
Examples: Chad, Haiti, Rwanda

4. Command Economies The state makes all economic decisions.
The government owns and operates means of production.

5. Terms associated with command economies:
Planned economy
Communism
Examples: Cuba, North Korea, Laos

6. Market Economies
Economic decisions are made by individuals in the marketplace.

7. Terms associated with market economies:
Free market
Free enterprise
Capitalism
Demand economy
Examples: United States, Japan

8. Mixed Economies
Mixed economies have features of both command and market economies.
There are no pure economies—they exist along a continuum from pure capitalism to command.
UK, US, Singapore

9. What is important to understand about this?
The way that countries answer the three basic economic questions can have a great effect on their economies.