Traditional economy
What is a traditional economy?
What is a command economy?
What is a market economy?
A market economy is an economy where consumers and businesses make most economic decisions.
What are characteristics of traditional economy?
People often have the same jobs as their parents
Goods are produced the way they have been for many years
Hunting, fishing, farming, and gathering are common
Traditions are based on tradition
What are characteristics of command economy?
The government decides what to produce
The government decides prices
The government may own businesses and resources
What are characteristics of a marketing economy?
Characteristics of a market economy are
businesses compete with each other,
Consumers decide what products are successful by buying them
Prices are determined by supply and demand
What are advantages and disadvantages of Traditional economy?
Advantages are Everyone knows their role, and there is a strong sense of community.
Disadvantages are Limited technology, and few choices of goods and services.
What are the disadvantages and advantages?
Advantages are resources can be sent where they are needed, and Essential services may be available to everyone.
Disadvantages are people have fewer choices, and businesses have less freedom to innovate.
What are advantages and disadvantages?
Advantages are Many choices for consumers,
What are examples?
An example is The government decides how much food, clothing, or housing should be produced.