Types of Economic Systems

The video tutorial explains the branch of economics, focusing on three types of economic systems: traditional, command, and market economies. Traditional economies rely on customs and bartering, with little progress and no major countries using this system. Command economies are government-controlled, providing free services and equal income, seen in countries like Cuba and North Korea. Market economies, like in the USA, are driven by supply and demand, offering individual freedom and competition among businesses.

What is a key characteristic of a traditional economy?

• High degree of individual freedom

• Rapid technological advancement

• Reliance on customs and bartering

• Government regulation of all businesses

In a command economy, who primarily makes the economic decisions?

• International organizations

• The government

• Private businesses

• Individual citizens

Which of the following is NOT a feature of a command economy?

• Free services for citizens

• Private business ownership

• Guaranteed employment

• Government-regulated earnings

What drives the regulation of the economy in a market economy?

• Government policies

• International trade agreements

• Supply and demand

• Cultural traditions

Which advantage is associated with a market economy?

• Limited consumer choices

• Uniform income distribution

• High degree of government control

• High degree of individual freedom