1. Traditional Economy
The basic economic decisions are made according to long-established ways of behaving.

2. Characteristics
Usually used by people who own their own resources- tribal hunters
Behaviors unlikely to change and passed from elders to youths
Tradition/customs answers the 3 major economic questions-
What and how much to produce (game and enough to feed tribe)
How to produce (tools and methods)
Who gets the product (divided evenly, based on role in the hunt, role in the tribe)
Freedom to make day to day decisions (hunt or gather)

3. Where can you find it?
Very few exist: Parts of central and South America, Africa, and Asia

4. Command Economy
The government or central authority owns/controls factors of production makes all basic economic decisions

5. Characteristics Little individual freedom
Government usually in charge of transportation, communication, banking, and manufacturing (including job opportunities and wages)
Central planning group makes decisions of how, what, and how much is produced.
Government decides what is produced and what is purchased
Who gets goods and services varies: only the rich or evenly divided
Little individual freedom

6. Where can you find it?
Economic system principles have existed for thousands of years (Ancient Egypt to Soviet Union)

7. Market Economy (Free Market)
System in which private individuals make their own choices about production, distribution, and consumption.

8. Characteristics
All economic decisions made through bargaining (Free enterprise, buyers and sellers)
Competition , profit, and investment are vital to success
People who make more desirable products or earn higher wages---can buy more goods and services
No one person or group runs the market economy
Individuals free to make decisions (Capitalism):
- How to use land, labor, and capital
- Choose own job/profession
- Choose to start own business
- Choose who will get what is produced

10. The US economy is based on the Free Markets
Where can you find it?
The US economy is based on the Free Markets

11. A type of economy that combines elements of the 3 main types
Mixed Economy
A type of economy that combines elements of the 3 main types

12. Characteristics Most common form of economic system today
China: 1980’s- still command economy
1990’s started adding Free Enterprise Principles
Today, China is still Communist but has some Free Enterprise Principles

13. Characteristics
The U.S. is considered Free Market- but has elements of a Command Economy
Government Command of specific services:
Mail
Education
National Defense
Highways and Airports