Economic Systems

By: Alomaur Day

Standard(s)SS7E8 The student will analyze different economic systems

a. Compare how traditional, command, and market economies answer the economic questions of (1) what to produce, (2) how to produce, and (3) for whom to produce. b. Explain how most countries have a mixed economy located on a continuum between pure market and pure command. c. Compare and contrast the economic systems in China, India, Japan, and North Korea

Market, Traditional, and Command Economies

Traditional economies Trade only with community, grow things that are in the area, and do the same things theirs parents do. Ex: Their parents worked on a farm. It is likely for the child to grow up having the same job. Market economies People have the ability and power to trade with another country, but the laws are enforced for you not to sell illegal things. Ex: The United States. The United States does not let yo sell anything, but you can sell legal things Command economies No entrepreneurship. No body has the right to control what goes in and out of the country exept for the government

Pure Market and Pure command

Pure market is when every body can sell everything they want and the government can not enforce the law. Pure command is when no body gets to sell what they want, and the government is in conrol. Most nations are mixed economies. A mixed economy is when the country has both or is in between them. It would be very rare to find a Pure Command economy or a Pure Market economy.

Countries' economies

India is mostly market, but they do have some government regulation. Japan is mostly market also, because they tax the rich and wealthy to give to the poor, so there is very little poverty. China is more of a Pure Command because it is communist, but has reformed to allow business and entrepreneurship. North Korea is almost entirely command.

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