The government decides what will be produced.

This economic system is the most flexible

The government has a role, but it is limited

Custom, ritual, or habit determines what is produced

Consumers are free to buy whatever they choose as long as they follow government regulations.

People have very little incentive to be efficient or innovative.

The most rigid and least responsive to change.

Communities typically have a low standard of living and lack modern conveniences

The U.S. and most other countries are examples of this type of economic system.

This is a Hands-off system

This is a Hands-on system

This is a Compromise system

Consumers are only allowed to buy what the government allows in this economic system.

Producers can produce according to supply and demand buy must follow government regulations.

This economic system is often rural and farm-based.

Communist Economic System

Price floors and ceilings are set by the government in this type of economy to help regulate the market.

Entrepreneurship is encouraged in this economic system, but not in the other two.

North Korea is an example of this type of economic system.