economic system

What is a traditional economic system?

• A pool store

• A system based on past habits, customs and traditions

• A brand new thing only in rich countries

What is a part of a market or Capitalist system?

• The government controls it all!

• The government is not involved. It is between the buyers and the sellers.

• Chicken are able to rule the world without anyone putting them into cages.

Define the economic system.

• o It is a system in which people produce and distribute goods according to customs handed from generations

• o It is a system in which families, clans or tribes make economic decisions based on customs and beliefs

• o It is the way a society uses resources to satisfy its people’s wants

• o It is a market economy based on individual choices

Explain command economy.

• o It is based on individual choice, not government directives

• o Here the government officials consider the resources and needs of the country and allocates those resources according to their judgement

• o A system in which families, clans or tribes make economic decisions based on customs and beliefs that have been handed down from generations to generations

• o A system in which families, clans or tribes make decisions based on government options and individual choice

Which of the following is an example of a command economy?

• o Authority of adults to make economic decisions for the family

• o Payments made by parents of allowances to younger children in exchange for chores, where both sides benefits

• o Communal sense of everyone contributing to the good of all without exact accounting of who does what nor the expectation of profiting from one another

• o World Trade Organization and Health care combine in Africa and work on Global issues

What drives the choices of consumers and producers in a market economy?

• o Government makes all economic decisions

• o Individual choice

• o Strongly defines economic roles

• o Images of the outside world, may tend people to leave their choice

How does a traditional economy answer the three economic questions?

• o What the government decides, how -the government owned the means of production and for whom- is the whole group

• o What- has always been produced, how- in traditional ways and for whom -good of the group

• o What- the goods consumers will buy are produced, how- by individually owned enterprises, for whom- people who can afford them

• o It is on choice and decision of the resources available

On organized way in which a nation chooses to use its resources to create goods/services.

• Economic systems

• Traditional economy

• Command Economy

• Mixed Economy

One in which economic decisions are based on a society's values, cultures and customs.

• Mixed Economy

• Traditional Economy

• Market Economy

• Command Economy

A science that examines how goods and services are produced, sold, and used.

• Economy

• Economics

• Economic Resources