Economic Systems

Front

People meet their basic needs much as their ancestors did.

Back

Traditional Economy

Front

People freely produce and buy what they want.

Back

Free Enterprise (Capitalist/Free Market) Economy

Front

Government owns some (but not all) basic industries.

Back

Socialist (Mixed) Economy

Front

Government sets all economic goals to be met. Options: Socialist (Mixed) Economy, Free Enterprise (Free Market/Capitalist) Economy, Communist (Command) Economy, Traditional Economy

Back

Communist (Command) Economy

Front

Economic decisions are made on the basis of customs and beliefs handed down from one generation to another.

Back

Traditional Economy

Front

In this economic system, the three fundamental economic questions are answered by the interplay between consumers and producers: 1. What should be produced? 2. How should it be produced? 3. Who gets what is produced?

Back

Free Enterprise (Free Market/Capitalist) Economy

Front

Private ownership of smaller businesses is allowed.

Back

Socialist (Mixed) Economy

Front

Workers labor together and are supposed to share equally in the fruits of their labor.

Back

Communist (Command) Economy

Front

Private property ownership is abolished. All business is owned and operated by the government.

Back

Communist (Command) Economy

Front

Prices are set by the interaction of supply and demand. Options: Socialist (Mixed) Economy, Free Enterprise (Free Market/Capitalist) Economy, Communist (Command) Economy, Traditional Economy

Back

Free Enterprise (Free Market/Capitalist) Economy