Types of Economy Review

The government or other central authority makes all economic decisions.

• Traditional

• Command

• Market

• Mixed

Combines elements of pure market and command economies:government and individuals share economic decisions

• Traditional

• Command

• Market

• Mixed

Economic decisions are made by individuals competing to earn profits based on supply and demand.

• Traditional

• Command

• Market

• Mixed

Economic system where custom governs economic decisions.

• Traditional

• Command

• Market

• Mixed

Government serves to protect both producer and consumers from unfair policies and practices.

• Traditional

• Command

• Market

• Mixed

Economic activities are usaully centered toward the family, tribe, or ethnic group.

• Traditional

• Command

• Market

• Mixed

There is no competition; the purpose of business is to provide goods and services, not to make a profit.

• Traditional

• Command

• Market

• Mixed

Individuals have freedom to make economic decisions. Profit is the motive for increasing work.

• Traditional

• Command

• Market

• Mixed