Which Economy is It?

An economy in which most of the economic decisions that are made are based on custom and on the habit of how such decisions were made in the past.

• Market

• Traditional

• Planned/Command

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

• Traditional

• Market

• Planned/Command

An economy in which changes in prices guide what and how goods and services will be produced, distributed, and consumed.

• Market

• Traditional

• Planned/Command

An economic system in which decisions are all made on the basis of customs, beliefs, religion, and habits.

• Market

• Planned/Command

• Traditional

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

• Traditional

• Planned/Command

• Market

The customs and habits of the past are used to decide what and how goods will be, distributed, and consumed. Within this system, each member of society knows in early life what her or his role will be because jobs are handed down from generation to generation.

• Planned/Command

• Market

• Traditional

The government owns the means of production.

• Planned/Command

• Traditional

• Market

An economic system that permits an open exchange of goods and services between producers and consumers.

• Planned/Command

• Market

• Traditional

An economic system based on individual choices and voluntary trade.

• Market

• Traditional

• Planned/Command

An economic system in which social roles and culture determine how goods are made, sold, and bought.

• Planned/Command

• Market

• Traditional