Economic Systems Review

This system believes the government should decide how goods will be distributed, and there are often shortages.

• Free Market Economy

• Command Economy

• Mixed Economy

This system is controlled by firms and households in a relationship that is mutually beneficial.

• Free Market Economy

• Command Economy

• Mixed Economy

This system is usually used in an Authoritarian government that demands obedience and does not allow individual freedoms.

• Free Market Economy

• Command Economy

• Mixed Economy

Most economies exist within this system on a continuum (some are more like a command than others, and some are more free market than others)

• Free Market Economy

• Command Economy

• Mixed Economy

This system can be used in both socialist and communist governments

• Free Market Economy

• Command Economy

• Mixed Economy

This system believes consumers decide what will be made

• Free Market Economy

• Command Economy

• Mixed Economy

This system believes in laissez-faire that there should be NO government involvement in the market

• Free Market Economy

• Command Economy

• Mixed Economy

This system believes that the government should decide where people work and how much they should be paid

• Free Market Economy

• Command Economy

• Mixed Economy

This system believes that the government or Invisible Hand decide what goods and services should be produced, depending on the situation

• Free Market Economy

• Command Economy

• Mixed Economy

This system is a blend of free market and command economies

• Free Market Economy

• Command Economy

• Mixed Economy