Types of Economies

An economy in which most economic issues of production and distribution are resolved through central planning and control.

• Traditional
• Command
• Market
• Socialist
• Mixed

An economy that involves a degree of private economic freedom mixed with a degree of government regulation of markets.

• Traditional
• Command
• Market
• Socialist
• Mixed

An economy in which customs and habits from the past are used to resolve most economic issues of production and distribution.

• Traditional
• Command
• Market
• Socialist
• Mixed

An advantage of a market economy.

• Maximizes socialwelfare
• Competition pushesbusinesses to efficient
• Less inequality of incomebecause government’s intentis to have a balancedeconomy
• Prevents the rich fromexploiting the poor

A disadvantage of a command economy.

• Prevent monopolies
• Prevent massunemployment
• Promotes a moreeducated society
• Produce products thatare not always used

An advantage of socialist economies.

• Less inequality of incomebecause government’s intentis to have a balancedeconomy
• Strong socialnetwork
• Resistance tochange
• -Large gap betweenthe rich and poor

What is NOT a common disadvantage of a pure market economy

• Unfair business practices
• Unsafe products
• Lack of inflation
• Unstable economy
• Environmental damage

What type of economy does the United States possess?

• Traditional
• Command
• Market
• Socialist
• Mixed