Types of Economic Systems
What are the main factors of a Traditional economic system?
An economic system in which decisions about production and consumption are based on custom and tradition.
What will be produced?
Out of all the products and services it must be decided which are to be chosen and which to produce less based on what people may need or want more than others.
Describe the values of economic freedom.
The ability of people to make their own economic decisions without interference from government.
Decisions are based on traditions passed down through generations.
Custom.
What are the main factors of a Command Economy?
An economic system in which decisions about production and consumption are made by a powerful ruler or government.
How will it be produced?
In what way should the products be produced should we focus more on labor production factories machinery manual or individually when producing each product.
Describe the values of economic efficeincy.
The result of using resources in a way that produces the maximum amount of goods and services.
The government makes all major economic decisions.
Powerful rulers.
What are the main factors of a Market Economy?
An economic system in which economic decisions are left up to individual producers and consumers.
Who will it be produced for?
Who would get these goods and how, how could your system allow for people to maintain and gain their needs either through the use of money or equal distribution.
Describe the values of economic equity.
The fairness with which an economy distributes its resources and wealth.
Individuals and businesses make decisions through buying and selling.
The people.
/What are the main factors of a Mixed economy?
An economic system in which both the government and individuals play important roles in production and consumption. Most modern economies and mixed economies.
Describe the values of Economic security.
The idea that the less fortunate members of soceity should get the economic support they need to live a decent life.
Describe the values of economic Growth.
A condition in which an economy is expanding and producing more and better goods and services.
Describe the values of economic stability.
A condition in which the goods and services people count on are availible when they want them.