Presentation is loading. Please wait.

Presentation is loading. Please wait.

Economic Systems 4 Types.

Similar presentations

Presentation on theme: "Economic Systems 4 Types."— Presentation transcript:

1 Economic Systems 4 Types

2 What is a system? A system is a way of doing something
Economic systems allow countries to produce and distribute goods/services based on their goals

3 Traditional System This type of economy relies on habit or custom to answer the 3 questions of allocation (what, for whom, how to produce) Everything is done just the way it was in the past, there is little room for change

4 Market System In this type of economy, decisions are made by individual consumers and producers – they decide how to answer the 3 questions by using voluntary trade Another name for this system is capitalism

5 Command System In this economy the central, or main, government decides how to answer the 3 questions for everyone The government tends to own most of the resources and controls labor by determining where people are allowed to work and how much they are paid

6 Types of Command Economies
Socialism: refers to the idea that fair means are used to distribute wealth equally; the government owns key utilities but the people elect the government via democratic elections Communism: believes that all economic and political power rests in the hands of the government and that change can only come about through violent revolution. Governments are authoritarian – strict obedience to the government is mandated or severe punishments will follow

7 Mixed System This type of economy is a combination of the market and command systems Most economies today are mixed and have more market tendencies but some command tendencies as the government has some decision making power

Download ppt "Economic Systems 4 Types."

Similar presentations

Ads by Google