1. Economic Systems

2. Command Economy Also known as a communist economy The goal is to achieve a classless society where all workers are equal The government controls all production and distribution No private property, the government owns all land, factories and farms No incentive to work harder Examples: China, North Korea, Cuba

3. Free Enterprise/Free Market Also know as Capitalism Prices are determined through Supply and Demand  High demand=Prices Increase  Low demand/High Supply=Prices Decrease Commercial Agriculture and Commercial Industry Examples: USA, Canada, Chile, Japan

4. Socialist Economy Government seeks to end poverty through control of major resources; and providing public services Major industries are owned by the government but property can be privately owned Fair distribution of income among all members of society Basic needs are met for free or at a very low cost (health care, education, housing) Examples: Sweden, Israel

5. Traditional Economy Subsistence agriculture and cottage industries Production of goods is based on custom, change and growth proceed very slowly Goods and services are produced to meet the needs of very few, little outside trading Found mostly in rural, non-industrial areas Examples: Bushmen of the Kalahari, villages in South Asia

6. Mixed Economy A combination of free market and limited government involvement The government seeks to ensure quality and regulation No economy totally follows any one economic system, usually a blend of different features

7. Journal Question “Choose one type of economic system and list the pros and cons. Would you prefer to live in this type of economy?”