traditional economies command economies market economies mixed economies four types of economics
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Types of Economies
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Traditional Economies
Command Economies
Market Economies
Mixed Economies
Four Types of Economics
Traditional Economies
Traditional economies are found in rural, non-developed
countries
Traditional Economies
Some parts of Asia, Africa, South
America and the Middle East have
traditional economies
Traditional Economies
Customs govern the economic
decisions that are made (traditions)
Traditional Economies
Advanced-technology is not
used in traditional economies.
Traditional Economies
Farming, hunting and gathering are done the same way as the generations before
Traditional Economies
Economic activities are usually centered toward the family
or ethnic unit
Traditional Economies
Men and Women are given different economic roles and
tasks
Traditional Economies
Command EconomiesThe government or other
central authority makes decisions and
determines how resources will be used
Command Economies
Change can occur relatively
easily
Command Economies
There is little individual freedom
Command Economies
There is no competition
Command Economies
Businesses are not run to
make a profit
Command Economies
Consumers have few choices in
the market place
Command Economies
Factories are concerned with
quotas
Command Economies
Shortages are common because of poorly run factories
and farms
Command Economies
The government dictates the job in which you work
Command Economies
The government sets the prices of
goods and services
Command Economies
Examples of command economies : Cuba,
North Korea and the People’s Republic of
China
Command Economies
Market Economies
Resources are owned and
controlled by individuals
Market Economies
Economic decisions are made by
individuals competing to earn profits
Market Economies
Individual freedom is considered
very important
Market Economies
Economic decisions are made by the
basic principles of supply and
demand
Market Economies
Profit is the motive for increasing
work rather than quotas
Market Economies
Mixed Economies
Government and individuals share
the decision making process
Mixed Economies
Government guides and regulates
production of goods and services offered
Mixed Economies
Individuals own the means of production
Mixed Economies
Government Protects consumers and
workers from unfair policies
Mixed Economies
Most effective economy for
providing goods and services
Four Types of Economics
¨ Traditional Economies¨ Command Economies¨ Market Economies¨ Mixed Economies
Review
Traditional Economies
Command Economies
Market Economies
Mixed Economies