Types of Economies

What is Traditional Economy

• Government play no role in the economy

• The government controls the economy

What is a Command (Communist) Economy?

• Central government makes most economic decisions

• Government play no role

• Government and individuals share the decision making process

What is Free Enterprise (Capitalist) Economy?

• Individuals and businesses are allowed to compete for profit with a minimum of government interference

• The government controls the economy

All personal needs, such as health care and education, are provided by the government.

• Traditional Economy

• Free enterprise (Capitalist) Economy

• Communist (Command) Economy

• Socialist Economy

Entrepreneurs bear their own risks but reap ALL their own PROFITS!

• Traditional Economy

• Communist (Command) Economy

• Socialist Economy

• Free Enterprise (Capitalist) Economy

Almost every person is a farmer. The government provides few services for health and education.

• Socialist Economy

• Communist (Command) Economy

• Free Enterprise (Capitalist) Economy

• Traditional Economy

People can own property and choose their occupations. The production is OWNED by the GOVERNMENT. Wages are set by the Government.

• Traditional Economy

• Free Enterprise

• Communist Economy

• Socialist Economy

Cuba and North Korea are close to having this type of system.

• Socialist

• Command

• Free enterprise

• Traditional Economy