1. Chapter 2-1
Economic Systems

2. Three Economic Systems
1. Traditional
--stems from ritual, habit or
custom (elders make decisions)
--found in tribes, Australian
Aborigines and Inuits

4. --central authority answers the 3 questions (dictator)
2. Command
--central authority answers the 3
questions (dictator)
--individuals have little choice
& are paid the same amount
--found in North Korea

5. --people and firms answer the 3 questions
3. Market
--people and firms answer the 3
questions
--CONSUMERS play the biggest
part in what is produced
consumer sovereignty
--most prosperous - US, Canada,
Japan, S. Korea and western
European countries

6. You will have 3 facts for each box
Economic Systems Adv. & Disadv
Traditional
Command
Market
You will have 3 facts for each box + -