1. Free Enterprise Market Economy vs. Command Economy

2. Economy
Economy is defined as a system by which productive resources are used to provide goods and services that satisfy peoples’ wants. All societies have this culture trait, but not all economies are the same.

3. Free Enterprise Market Economy
In a Free Enterprise Market Economy, citizens control the production and distribution of the goods and services that are provided.

4. Characteristics of a Free Enterprise Market Economy
Entrepreneur-individual/citizen who assumes all the risks in a new business and can own private property
Ex: Shark Tank
Higher quality of goods driven by competition
Great variety of goods allowing for consumer choice

5. Characteristics of Free Market Enterprise
Based on Supply and Demand-business supply goods demanded by consumers. The higher the demand for an item, the price goes up.
EX: Hurricane Harvey – gas prices went up due to increased demand
Economic freedom
Typically practiced in countries with a limited government
Example: United States

6. Command Economy
In a Command Economy, there is central or government regulation and control of all production, distribution and sales.

7. Characteristics of a Command Economy
Government ownership and control of industry and distribution
Government sets prices for goods produced
No consumer choice-must purchase what the government produces
Government determines wages or salaries of workers
Typical of an unlimited government with an absolute or totalitarian leader.
Examples are the former Soviet Union and North Korea