Presentation on theme: "Objective 1.01 Understand economic systems. Economic Systems 1."— Presentation transcript:
Objective 1.01 Understand economic systems. Economic Systems 1
Main types of economic systems Topics 2
Economic Systems What are the three economic questions that all economies must answer? 3
Economic Systems What to produce? How to produce? For whom to produce?
Economic Systems An economic system is a nation’s plan for answering the three economic questions. 5 What to produce? How to produce? For whom to produce?
Economic Systems The main types of economic systems are: –Command or Communist –Market –Traditional –Mixed
Economic Systems Who owns the resources in the main types of economic systems? –Command –Market –Traditional Market Place: Where goods and services exchange hands. –Centered on family –Government –The people 7
Economic Systems Command Economy The government owns resources and dictates what is produced. (Communist governments have command economies) China Cuba North Korea
Economic Systems Market Economy Goods and services are owned and controlled by the people. United States United Kingdom
Economic Systems Traditional Economy Goods and services are produced by custom, tradition, and belief systems and controlled by the family. Third World and developing countries: Ethiopia Uganda Afghanistan
Economic Systems Mixed Economy Elements from the command and market style. Decisions are made by government and people.