Types of Economic Systems

Types of Economic Systems

• Decisions based on customs/traditions, or religious beliefs

• People inherit jobs, fulfill roles in community

• Can lead to less conflict, but also less personal choice

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Traditional Economy

• All decisions are made by the government

• Jobs & Resource sharing is decided by government

• Can be really inefficient, low quality of life, but no businesses are forced out by monopolies

​Command Economy

• Decisions are made and resources are shared based on supply and demand

• Lots of competition among businesses= higher quality products

• Can create a wealth gap/ monopolies, but also more efficient businesses

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Market Economy

• Government takes control of big/important industries like healthcare, education, utilities

• Supply & demand controls the rest of the markets/ businesses​

• Can create inefficiencies in govt. controlled industries, but still allows for competition and basic quality of life

​Mixed Economy

Match

Match the following types of economic systems to their descriptions

• Econ decisions made through customs/ religious beliefs

• Econ decisions made entirely by govt.

• Econ decisions made almost entirely by supply/demand

• Econ decisions made by both govt and supply/demand

Traditional Economy

Command Economy

Market Economy

Mixed Economy

• Traditional Economy

• Command Economy

• Market Economy

• Mixed Economy

Categorize

Options (12)

Native/ ancient societies

Based on customs/ religion

People inherit their jobs

North Korea

Govt decides almost everything

Creates low quality of life and inefficiencies

United States

Supply and demand decides almost everything

Creates a lot for competition and productivity

European countries

Govt takes over key industries

Supply and demand determine some industries

Organize these options into the right categories.

Traditional Econ

Command Econ

Market Econ

Mixed Econ

Open Ended

Which type of economic system do you think would be the best for most people to live in? Explain your answer.