Economic Systems

Economic decisions are made according to the laws of supply and demand (market).

• market economy

• command economy

• mixed economy

The government takes care of people’s needs while the marketplace takes care of people’s wants.

• market economy

• command economy

• mixed economy

Resources are privately owned. You can own your own home, your own land, and your own business.

• market economy

• command economy

• mixed economy

Consumers are the ones who determine the demand for an item.

• market economy

• command economy

• mixed economy

Most nations have this type of economy.

• market economy

• command economy

• mixed economy

The primary role of government is to support the marketplace by removing obstacles such as trade barriers.

• market economy

• command economy

• mixed economy

There is no incentive for entrepreneurship when you can’t run your own business.

• market economy

• command economy

• mixed economy

Individuals have the freedom to choose from many different competing products, and the freedom to start a business or choose a career.

• market economy

• command economy

• mixed economy

The primary advantage of this type of

economy is that it guarantees everyone an

equal standard of living. The state provides

you with a job, a place to live, and health

care.

• market economy

• command economy

• mixed economy

Wages are fixed by the state. If you're a highly skilled worker, like a doctor or lawyer, you often earn the same wage as an unskilled worker.

• market economy

• command economy

• mixed economy