Market, Command, and Mixed Economies

Mixed Economies

Open Ended

Bell Ringer:

In what economic system does the government make all economic decisions?

SS6E1 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 that countries have a mixed economic system located on a continuum between pure market and pure command.

Last week

• we looked at three different economic systems: Traditional  Command  Market Each system has a different approach for answering the three economic questions. 

• Traditional economies are usually only found in remote, agricultural societies. Most countries tend to favor market or command principles.

Multiple Choice

Which economic system uses bartering as there system for exchange of goods

• Command

• Traditional

• Market

Multiple Choice

In which economic system are economic decisions made by businesses?

• Command

• Traditional

• Market

What Economic System Does the United States have?

Let's discuss as a class.

Mixed Economy

• The United States does not have a pure command or market economy. Instead, it is a mixture of the two.

• A mixed economy combines elements of both command and market systems.

• There are no pure command or market economies. To some degree, all modern economies are a “mix” of both systems and are often referred to as mixed economies.

• Example - Airlines, automotive, etc.

What is a mixed economy?

https://www.youtube.com/watch?v=8YMURolHx8Y