1. 4 Types of Economic Systems

2. The 4 Types of Economic Systems
Four very different types of Economic Systems have evolved as different societies have placed different emphasis on different goals and priorities in their efforts to answer the Three Economic Questions:
What to produce?
How to produce?
For whom to produce?

3. Traditional Economy Family or Community based economic systems
Relies on ancestors customs and habits to make economic decisions.
Bartering and trading system.
Examples:
Inuit (of Northern Canada)
Aborigines (in Australia)
Amazon Tribes (in South America)

4. Market Economy
Individual or Consumer based economic system that relies on the consumption choices of consumers.
Also called Capitalism, or free market economy.
Entrepreneurs take risks to start new businesses. (ex. Shark Tank)
Examples:
There are not any pure market economies in the world.

5. Command Economy Central government makes all economic decisions.
All means of production (land, labor, capital) are government owned and controlled.
Examples:
North Korea

6. Mixed Economy
Economic system that is a mixture of traditional, market and command economies.
Businesses get to make choices but there is some government regulation.
Examples:
United States
Canada
Japan
Most modern economies