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Market Economy Definition: Decisions on producing and consuming goods and services are based on what people want to buy and/or sell (a.k.a. supply & demand). Pro: People are free to make their own choices about what services or products to purchase. Con: Market outcomes may not be equitable. Short Supply of Gas + Increase in Gas Demand = Price increase Ample supply of gas + Little to no demand = Price decrease

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Market Economy Examples CanadaUnited Kingdom

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Command Economy Definition: The government controls what is produced and how it is produced. The government owns the resources and decides who gets the products. Pros: Command economies can prevent abuse of large companies and can prevent mass unemployment. Cons: Limits the rights and freedoms of citizens. If there were a shortage of gas in countries with a command economy, the government could ban citizens from buying gas in order to save it for government vehicles.

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Command Economy Examples North KoreaCuba

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Mixed Economy Definition: A mixed economy means that part of the economy is left to the free market, and part of it is run by the government. Pros: A mixed economy can create greater equality and provide a safety net to prevent people living in absolute poverty. Cons: Can be difficult to know how much governments should intervene. In reality most economies are mixed, with varying degrees of state intervention.

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Mixed Economy Example The United States of America

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Traditional Economy Definition: An economy in which people make their own products and is based on customs, traditions, and economic roles that are typically passed down from one generation to the next. Pros: A sense of community within the economy and income equality. Cons: Lack of modernization, lack of personal gain, and lack of freedom. Tribal communities trading goods with one another is a good example of this.

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Traditional Economy Examples EskimosThe Amish

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In your notebook. Economy TypeDefinition (In your own words) Pros/ConsExample(s)