1. III. Economic Systems

2. Every single society has an economic system.
The purpose of an economic system is to make and distribute goods and services.
The roles of individuals, businesses, and government vary in each system.
There are four basic economic systems: Traditional, Market, Command, and Mixed

3. Traditional Economies
An economy where people make economic decisions based on their customs and habits.
needs and wants are usually established through hunting and farming.
This is usually the traditions of their ancestors
Culture is seen as more important than having a strong economy

5. People in traditional economies usually do not want to change their basic way of life.
In today’s world, traditional economies are not common

6. Market Economies
An economy in which individual consumers and producers make economic decisions
This type of economy is also called capitalism, or free market.
Encourages people to start new businesses by giving them economic freedom

8. Command Economies
In this form of government, the central government makes all economic decisions
also called a centrally planned economy
little or no economic freedoms for individuals
producers and consumers make very few basic economic decisions

9. Mixed Economy In reality pure market or command economies do not exist
most societies have mixed economies – different levels of government control
combines different elements of traditional, market, and command economic systems

10. The United States has about the closest thing to a pure market economy
However, it is still considered a mixed economy because of minor government regulations
For example, the government passes laws to protect the rights of consumers
The government also influences economic growth through jobs and services

11. Countries like North Korea have as close to a pure command economy as you can get, but are still considered mixed.
The government controls almost all economic decisions.