1. T YPES OF E CONOMIES A ND E CONOMIC S YSTEMS

2. “Can’t always get what you want…” It states, “society has insufficient productive resources to fulfill all human wants and needs” SIMPLY – the economic problem of having unlimited wants/needs in world of limited resources It’s the fundamental challenge facing all individuals and nations (economies)

3. Legend: P - price Q - quantity of good S - supply D - demand “Determines the price of goods in a competitive market, ie market economy or mixed market economy”

4. T YPES OF E CONOMIES Traditional Traditional Command (Planned) Command (Planned) Market Market Mixed Market Mixed Market

5. Government controls the economy Government controls how??? › Taxes › Embargos › Worker Rights --- Classic Examples of Command Economies --- USSR USSR during Cold War (Communism) China China in last 30 years

6. Economy free of all government control Not possible to be 100% completely free of all government control, so… Market economies are “ MIXED MARKET ” in practice

7. Government exercises some controls, but generally allows the buyer to decide what to buy Known as “ CAPITALISM ” Our economy in the United States today STILL… THE BEST ECONOMY IN THE WORLD

8. CIA F ACT BOOK Go to my blog and find the link, please.