2 Command EconomiesIn a COMMAND ECONOMY the government controls the factors of production and makes all decisions about their use.
3 Command Economy The government answers the 3 basic economic questions. What? A dictator or a central planning committee decides what products are needed based on what they believe is important.How? Since the government owns all means of production in a command economy, it decides how goods and services will be produced. The government employs all workers and controls all employment opportunities and benefits.
4 Command EconomyFor Whom? The government decides who will get what is produced in a command economy. Wealth is shared equally, to ensure everyone’s basic needs are met. The government provides housing, food, medical care, education, and jobs.There is much security in this system.
5 SocialismIn a SOCIALIST political system, there is increased government involvement.The main goal is to keep prices low for all people and to provide employment for many.The government runs key industries:TelecommunicationsMiningTransportationBanking
6 Socialism More social services are given Free or low cost medical care Education – Elementary through CollegePeople pay higher taxesA democratic political system, only with an increased amount of government involvement.Country examples: Canada, Germany, Great Britain, Sweden, and Australia
7 Communism COMMUNIST countries have a totalitarian form of government. This means that the government runs everything and makes all decisions.Theoretically, there is no unemployment.People are assigned jobsTold what kind of schooling they will receiveTold where to live
8 Communism Free medical Help with food and housing The Communist party is in charge.Country examples: Cuba, North Korea, and China
9 Mixed Economies All economies in the world today are mixed. There is some government involvement in each economy.Depending on how much the government is involved is what kind of economy that country has.
10 Continuum of Economic Systems CapitalismSocialismCommunism