1. Economic Systems There are 4 different economic systems in the world. These systems are how countries economies are run.

2. Before we begin we must know what supply and demand are.  What is supply? What people make What is demand? What people want

3. Communist  This is an economic system in which the government controls the factors of production.  They make all decisions about use and distribution of income.  The government produces the goods or provides the services itself  The government owns everything!

4. Countries with Command Economies.  Cuba  North Korea  Former Soviet Union

6. Advantages  Only products that are required are produced, this prevents the production of some undesired products.  Distributes wealth equally.

7. Disadvantages  No monetary reward or incentive to become good at what you do.  Limit personal freedoms of your citizens.  The Government is not always the best at determining what people want.  Limited supply of products.

8. Free Enterprise  Production and distribution of goods and services are based on supply and demand.  People decide what to purchase and produce and how much to charge without government intervention.

9. Countries with Free Enterprise systems.  United States  European Union/European Nations. *There is no complete free enterprise system in the world

10. Advantages  It creates wealth.  People have a choice.

11. Disadvantages  Sometimes there is unpredictable markets.

12. Socialist  Own many of the larger industries and provide education, health and welfare services while allowing citizens to make some economic choices.

13. Countries with these  Germany  Canada

14. Advantages  Basic services are free.  People still have choices and may run their own businesses.

15. Disadvantages  Government has a say so in many things in your life.  If the government falls, so do your basic services.

16. Traditional Economic system  Family or Community based Economic System that relies on custom and ritual to make its choices.  Examples: Aborigines Amazon Tribes Any Subsistence Economy