1. Traditional, Command, Market, and Mixed
Economic Systems
Traditional, Command, Market, and Mixed

2. Traditional Economy
Customs and habits of the past are used to decide what and how goods will be produced, distributed and consumed.
Jobs are handed down from generation to generation.
Very little change occurs over the generations
Primitive tools and methods are used.
Farming, hunting and gathering, and cattle herding are examples of a traditional economy

3. Command Economy
The government makes the decisions on which goods and services to produce.
Usually in a communist country
Workers are told what to produce and how much to produce within a period of time (quota).
The wages earned by employees is set by the government.
The government does NOT always know what the people need.
Luxury items like computers and televisions are priced high.

4. Market Economy Known as capitalism and free enterprise
Businesses and farms are owned by individuals or corporations with no government involvement
The law of supply and demand determines the price that people pay for items
There is no true market economy today
The US is the closest to a true market ecnomy

5. Mixed Economy Most countries are MIXED economies.
Private citizens and corporations run businesses and farms with some government involvement.
Some examples are the U.K., Germany, Russia, the U.S.