Types of Economic Systems

Economic decisions are based on customs and historical precedent

• Free market

• Command

• Mixed

• Traditional

Private ownership of property/resources

• Traditional

• Free Market

• Mixed

• Command

Central ownership (usually government) of property/resources

• Traditional

• Free Market

• Command

• Mixed

Individuals and businesses are owners and decisions makers for the private sector

• Traditional

• Free Market

• Mixed

• Command

People often perform the same type of work as their parents and grandparents, regardless of ability or potential

• Traditional

• Free Market

• Command

• Mixed

Profit motive, competition, consumer sovereignty, individual choice, minimal government involvement in the economy

• Traditional

• Free market

• Command

• Mixed

Centrally-planned economy and lack of consumer choice

• Traditional

• Free Market

• Command

• Mixed

Government is owner and decision maker for the public sector

• Traditional

• Free Market

• Command

• Mixed

Government's role is greater than in a free market economy and less than in a command economy

• Traditional

• Free Market

• Command

• Mixed

A country with a traditional economy would be

• England

• China

• Africa

• United States