Economic Systems and Vocabulary

An economy in which most of the economic decisions are made based upon customs and habits of how such decisions were made in the past.

• Market

• Traditional

• Command

• Mixed

An economic system based upon individual choices and voluntary trade.

• Traditional

• Mixed

• Command

• Market

The government owns the means of production in this economic system.

• Command

• Mixed

• Market

• Traditional

Sometimes called Free Enterprise which allows for private ownership of businesses and property.

• Traditional

• Command

• Market

• Mixed

An economic system where decisions are made based upon beliefs, rituals, religion and other cultural factors.

• Market

• Traditional

• Mixed

• Market

An economic system where people usually just produce enough to meet their needs for survival.

• Traditional

• Market

• Mixed

• Command

Government planning groups make the basic economic decisions such as which goods and services to produce, prices, and wage rates.

• Market

• Traditional

• Mixed

• Command

In this economic system, changes in prices guide what and how good and services will be produced, distributed, and consumed.

• Market

• Mixed

• Traditional

• Command

Economic system where the government decides what good will be produced, how they are produced, and for whom they are produced.

• Mixed

• Market

• Command

• Traditional

Customs and habits from the past are used to answer the three economic questions and people often have the same job roles as they are handed down from generation to generation.

• Mixed

• Market

• Command

• Traditional