1. Economic Systems

2. Traditional Economy

3. Main Features. Economic decisions are based on customs & traditions
Main Features *Economic decisions are based on customs & traditions. *Production is based on time honored methods New ideas are discouraged.

4. Example *Rural-non industrial areas *Parts of Africa, South Asia

5. Pros. You know what you will be when you grow up
Pros *You know what you will be when you grow up *Do not have to have expensive tools

6. Cons *do not make very much money *usually can not escape poverty

7. Production Methods *Subsistence Agriculture-almost everything is grown for personal use by the family or village. *Cottage Industries-people make items in their home.

8. Free Enterprise System *Capitalism, Free-market System

9. Main Features. People own their own goods and property
Main Features *People own their own goods and property *The ability to make a profit drives people to risk their own money to start a business *Supply and Demand determines prices

10. Examples *United States *United Kingdom *Canada *Japan

11. Pros. Can make a lot of money. Be the boss of your own company
Pros *Can make a lot of money *Be the boss of your own company *limited government interference

12. Cons. Can lose a lot of money
Cons *Can lose a lot of money *Class Gap-tend to have large gaps in earned income between the social classes

13. Production Methods *Commercial Agriculture-food grown in large quantities to sell for a profit *Commercial Industries-goods manufactured in large quantities to sell for a profit

14. Communism

15. Main Features *All decisions on production, distribution, use of resources and prices are set by government planners *No private property, the government owns all land, factories, farms, and major resources

16. Examples *China* *North Korea *Vietnam *Cuba

17. Pros. In theory, all workers should labor together and share equally
Pros *In theory, all workers should labor together and share equally *To achieve a classless society

18. Cons. not able to be creative and do your own thing
Cons *not able to be creative and do your own thing * no motive to do better and achieve more

19. Production Methods *Decisions made by the government through national plans

21. Socialism

22. Main Features *Production, distribution, and use of resources are made by the government *Major industries are owned by the government

23. Examples *Sweden *Israel

24. Pros. Free or low cost education. Free or low cost health care
Pros *Free or low cost education *Free or low cost health care *In theory should cause a fairer distribution of income

25. Cons *Very high taxes *increased government interference

26. Production Methods *Government owns major industries while private industry is only small businesses

27. You sell one and buy a bull
Capitalism
You sell one and buy a bull

28. The government takes the cows and gives you a cup of milk
Communism
The government takes the cows and gives you a cup of milk

29. The government takes one cow and gives it to your neighbor
Socialism
The government takes one cow and gives it to your neighbor

30. Traditional
You wish! You have a goat