Presentation on theme: "What is an Economy? Economy and Government Unit Economy Economy is the production and exchange of goods and services among a group of people. Economy."— Presentation transcript:
Economy Economy is the production and exchange of goods and services among a group of people. Economy can be found at different levels: Local Regional National International
Four basic types of economy: Traditional economy Command economy Market Economy Mixed Economy Think TCM ²
Economic System An economic system is the way people use resources to make and exchange goods and services. Can you think of a way that you as teenagers can participate in an economic system? Think about the Barter system
Traditional Economy The Barter System: Where goods are exchanged between people but money is rarely exchanged. Oldest economic system
Command Economy The production of goods (think of clothes, cars, toys, etc…) and services are decided by a central government. The government usually owns most of the resources and businesses that make the products or provide the services.
Market Economy The production of goods and services is determined by the supply and the demand of consumers. Also known as demand economy; capitalism United States has an market economy How do you contribute to the market economy in your nation?
Mixed Economy A combination of command and market economies provides goods and services Some countries that have mixed economies: -United Kingdom - Italy - Canada - Japan - Germany - Australia
Apply your Knowledge What type of economy is seldom used today? Why do you think that is true? Who controls a command economy? How are command and market economic systems different?