(a)   corporation had to do this when it expanded to India.

While India's economy shares many characteristics with the United States, many of its business practices are based on a (a)   .

(a)   use an economic system—an organized way of providing for the wants and needs of their people.

The way societies organize themselves (a)   .

(a)   kinds of economic systems exist—traditional, command, and market economies.

In practice, however, almost all economies, like that of India, (a)   .

Many of our actions (a)   .

Why, for example, does the (a)   at a wedding?

Such practices have become part of our (a)   .

In a society with a traditional economy, (a)   —and nearly all other economic activity—stems from ritual, habit, or custom.

Habit and custom also (a)   .

Individuals are generally (a)   based on what they want or would like to have.

Instead, their roles are defined by the (a)   .

(a)   have traditional economies.

The Inuit of northern Canada in the 1800s (a)   of a traditional economy.

For generations, Inuit parents taught their children how to survive in a harsh climate, (a)   .

(a)   taught these skills to the next generation.

When the Inuit hunted, it was traditional to (a)   with other families.

If a walrus or bear was taken, hunters divided the kill (a)   as there were heads of families in the hunting party.

(a)   had first choice, the second hunter to help with the kill chose next, and so on.

Because the Inuit shared freely and generously with one another, (a)   later shared their portions with other families who had not participated.

The result was that the hunter had the (a)   , rather than a physical claim to the entire animal.

Because of this tradition of sharing, a village could survive the long, harsh winters as long as (a)   .

(a)   was partially responsible for the Inuit's survival for thousands of years.

The main advantage of a traditional economy is that (a)   .

Little uncertainty exists over (a)   .

If you are born into a family of hunters, (a)   .

If you are born into a family of farmers, (a)   .

Likewise, little uncertainty exists over (a)   , because you do things much the same way your parents did.

Finally, the (a)   is determined by the customs and traditions of the society.

In some societies, you would provide for (a)   .

In others, such as the Inuit, you would share what you have hunted with (a)   .

In other words, (a)   dictates how people live their lives.

The main drawback of a traditional economy is that it tends to (a)   .

The strict roles in a traditional society have the effect of (a)   .

The lack of progress leads to (a)   than in other economic systems.

In a command economy, a (a)   makes the major decisions about WHAT, HOW, and FOR WHOM to produce.

A command economy can be headed by a king, a dictator, a president, or (a)   .

In a (a)   , the government makes the major economic decisions.

This means that the government decides if houses or apartments will be built. It also decides on the best way to build them, as well as (a)   .

Most command economies severely (a)   .

(a)   are not allowed to own their homes, businesses, and other productive resources, although they may have some personal items and tools.

Individual freedom also (a)   .

For example, if the government wants engineers rather than social workers, then (a)   .

This limits individual choices because (a)   .

Finally, government officials tend to (a)   when making economic decisions.

The result is that some of the country's money often goes to (a)   like houses, cars, and extravagant vacations for these officials.

Because they tend to be unproductive, (a)   .

(a)   are modern examples, but in the 1970s and 1980s, the communist bloc countries of the former Soviet Union had command economies.

In the former Soviet Union, for example, the (a)   determined needs, set goals, and established production quotas for major industries.

If it wanted growth in heavy manufacturing, (a)   .

If it wanted to strengthen national defense, (a)   .

The main strength of a command system is that (a)   .

The former Soviet Union went from a rural agricultural society to an industrial nation in a few decades by (a)   .

During this period, the (a)   shifted resources on a massive scale.

Another advantage of command economies, especially those represented by the former Soviet Union, is that many health and public services are available to everyone (a)   .

Pure command economies (a)   .

One disadvantage of command economies is that they (a)   .

In the Soviet Union, for example, generations of people were forced to (a)   .

Similarly, the current North Korean government has put a strong emphasis on (a)   .

In the meantime, the North Korean people have been (a)   .

At times, the government even had to (a)   from international sources.

A second disadvantage is that the system gives people the incentive to (a)   instead of producing a good product.

At one time in the former Soviet Union, (a)   were measured in tons of output.

(a)   then filled their quotas by producing the world's heaviest electrical motors.

A third weakness is that a command economy requires a large (a)   .

In the former Soviet Union, an army of clerks, planners, and other administrators (a)   .

This structure (a)   .

Yet a fourth weakness is that the planning bureaucracy (a)   to deal with minor day-to-day problems.

As a result, command economies tend to (a)   —or collapse completely, as did the former Soviet Union.

Finally, rewards for (a)   are rare in a command economy.

Each person is expected to (a)   according to the decisions made by central planners.

In a market economy, (a)   .

In economic terms, a (a)   is an arrangement that allows buyers and sellers to come together to exchange goods and services.

A market might be in a physical location, such as a farmers' market, or on an (a)   , such as eBay.

Regardless of its form, a market can exist as long as a (a)   is in place for buyers and sellers to meet.

A market economy is (a)   .

People can spend their money on the products they want most, which is like casting (a)   for those products.

(a)   which products people want, thus helping them answer the question of WHAT to produce.

Businesses are free to find the (a)   when deciding HOW to produce.

Finally, the income that consumers earn and spend in the market (a)   .

Market economies also feature the (a)   .

A market economy is often described as being based on (a)   —an economic system where private citizens own the factors of production.

The term (a)   draws attention to the private ownership of resources, while the term market economy focuses on where the goods and services are exchanged.

As a result, the two terms focus on (a)   .

(a)   are based on markets and capitalism.

While there are significant differences among them, these economies share the common elements of (a)   to seek profits.

The first advantage of a market economy is its (a)   .

People are free to spend their money on (a)   .

They also are free to decide where and when they want to work, or if they want to (a)   .

At the same time, producers are free to decide whom they want to hire, (a)   , as well as the way they want to produce.

The second advantage of a market economy is that it (a)   .

Prior to 2005, for example, gasoline prices were low, so people tended to (a)   .

When the price of gas rose sharply in that year, SUV sales fell, and smaller, more fuel-efficient vehicles (a)   .

A third advantage is the relatively (a)   .

Except for certain concerns such as national defense, environmental protection, and some care for the elderly, the government normally tries to (a)   .

A fourth advantage is that (a)   .

Billions, if not trillions, of (a)   are made daily.

Collectively, people make the decisions that direct scarce resources into the uses consumers favor most, so (a)   .

A fifth advantage of the market economy is the (a)   .

You can find ultrasound devices to keep the neighbor's dog out of your yard, or you can (a)   .

In short, if a product can be imagined, (a)   .

A sixth advantage is the (a)   .

In a market economy, the (a)   does not affect the choices of other groups.

If 51 percent of the people want to buy classical music, and 49 percent want to buy rap music, (a)   .

The market economy (a)   .

Some people may be too young, too old, or too sick to earn a living or to care for themselves. (a)   without assistance from family, government, or charitable groups.

A market economy also may not (a)   .

For example, private markets do not adequately supply all of the roads, universal education, or comprehensive health care (a)   .

This is because private producers concentrate on (a)   .

Finally, a market economy has a (a)   .

(a)   might worry that their company will move to another country in search of lower labor costs.

Employers may worry that someone else will produce a better or less expensive product, thereby (a)   .

While textbooks identify neat categories like traditional, command, and market economies, the (a)   .

(a)   —systems that combine elements of all three types.

When we consider political systems as well as economic systems, the picture (a)   .

For example, (a)   is a mixed economic and political system in which the government owns and controls some, but not all, of the basic productive resources.

In socialistic countries, the government also provides some of the basic needs of its people, such as (a)   .

An extreme form of socialism is (a)   —a political and economic system where all property is collectively—not privately—owned.

In a communist system, labor is organized for the (a)   , and everyone consumes according to their needs.

In practice, however, communist governments have become so involved in economic decisions that (a)   .

If government or tradition, as well as markets, (a)   of WHAT, HOW, and FOR WHOM to produce, then a society has a mixed economy.

The type of political system in a mixed economy (a)   than the way basic economic decisions are made.

For example, some mixed economies have a political system based on democracy, and (a)   .

The state's involvement in (a)   also can vary.

Some governments provide only for basic needs such as defense, a justice system, and (a)   .

The more socialistic a country is, the more it will make major economic decisions, often with the claim that (a)   .

Some governments intervene only in certain key sectors or industries and (a)   .

If the government intervenes too much, a mixed economy can (a)   .

(a)   of mixed economies.

China has a (a)   of traditional, command, and market economies.

While tradition has a strong influence in rural areas, the government makes many of the major economic decisions and (a)   .

China is changing, however. In recent years the government has allowed some private ownership of resources, and (a)   .

In Norway, the government (a)   .

It uses the revenue from the sale of oil to other nations to keep its domestic gas prices low, finance education, maintain roads, and (a)   .

Because the government controls just one industry, the mixed economy is based on (a)   with some elements of socialism.

Cuba and North Korea today are very similar to the (a)   , where a socialist government controlled resources to provide for all the people.

However, the ownership and control of resources were so extensive that many economists thought of the country as a (a)   .

One advantage of a mixed economy is that it (a)   .

All societies include some people who are too young, too old, or too sick to provide for themselves, for example, and most societies have (a)   .

If the society has a democracy, voters can use their (a)   to affect the WHAT, HOW, and FOR WHOM decisions even if the government owns no productive resources.

For example, the government can pass laws to provide aid for those most in need or to (a)   .

Under socialism, the (a)   is addressed more directly.

Ideally, those who are not fortunate or productive enough to take care of themselves still share certain benefits, such as (a)   .

While mixed economies tend to provide more services, the (a)   can mean higher costs for citizens overall.

Germany, for example, offers a wide range of benefits, but it also has a (a)   .

During economic downturns, when the government collects fewer taxes, (a)   is available for these programs.

The German government has discussed placing limits on benefits, such as unemployment and welfare, because of (a)   .

In some socialist countries, the availability of services may be limited or the (a)   may deteriorate over time.

Today, for example, Cuba claims that it has free health care for everyone, but the care is (a)   for everyone except high-ranking members of the Communist Party and those willing to pay for services in dollars.

Historically, both socialism and communism have proved to be (a)   than capitalism.

For example, if workers receive government guarantees of jobs, (a)   than are necessary, driving up production costs.

Because socialism has proved to be so inefficient, (a)   allow more capitalist development.

This is especially true in China, where the emergence of capitalism has helped the country to (a)   .