1. What is an economy? An economy consists of the economic system of a country or other area. When people have jobs, they have money. When they have money, they spend money. When they spend money, businesses make money and can pay their workers. It’s a cycle. It can also work backwards. How? Purchases Jobs Money

2. Economies There are three types of economies a country can have. Traditional Market Command

3. Traditional Economy Definition: A system where the economy is affected by ritual, custom, or habit. (Copy down this definition on your circle map.)

4. Traditional The definition goes here.

5. Traditional Economy Example of a sentence: Poor countries, like those in many parts of Africa, often have traditional economies. (Now create your own sentence using the words, “traditional economies” on the circle map!)

6. Traditional Your sentence goes here.

7. Traditional Economy (Now draw your own picture.) These are pictures of traditional economies. They are making money off their own small businesses, farms, etc…

8. Traditional Your picture goes here.

9. Market Economy Definition: A system where individuals depend on supply and demand. It is the same as a free enterprise system. (Copy down this definition on your circle map.)

10. Traditional The definition goes here.

11. Market Economy Example of a sentence: Countries with a lot of money, like the United States, have market economies where people run their own businesses. (Now create your own sentence using the words, “market economies” on the circle map!)

12. Market Your sentence goes here.

13. These are pictures of market economies. They are big businesses owned by regular citizens. Lot of money is involved. (Now draw your own picture.) Market Economy

14. Market Your picture goes here.

15. Command Economy Definition: A system organized around a central authority which makes most of the economic decisions. (Copy down this definition on your circle map.)

16. Command The definition goes here.

17. Command Economy Example of a sentence: Communist countries and countries with dictators, like Cuba and North Korea, usually have command economies. (Now create your own sentence using the words, “command economies” on the circle map!)

18. Command Your sentence goes here.

19. Command Economy These are pictures of command economies. The government owns most everything, and the people do as they are told. (Now draw your own picture.)

20. Command Your picture goes here.