1. Types of Economic Systems
By: Ben Quick

2. Economic Systems (review)
The way in which nations use their resources to satisfy their people's needs and wants
Can be differentiated by how they answer the three basic economic questions.

3. The three economic Questions (review)
What should be produced?
How should it be organized?
For whom should we produce?

4. Types of Economic Systems
Traditional
Command
Market
Mixed

5. Traditional Economy
Economy that used tradition (customs, beliefs, religion) to answer the three basic economic questions
Very few nations still use this system
- Middle East
- Africa
- Latin America

6. Command Economy
Economy where the government makes all the decision related to the three basic economic questions
Individuals have little to no voice in economic decisions
The government controls the factors of production

7. Market (capitalist) Economy
Consumers answer the three basic economic questions
Individuals own the factors of production

8. Mixed Economic System
A cross between a command economy and a market economy
Some government control
Mostly consumer driven

9. Questions?