Traditional
In a traditional economy, how is it decided what to produce?
By customs, traditions, and what ancestors produced.
In a command economy, who decides what will be produced?
The government makes all production decisions.
In a market economy, who decides what products should be made?
Consumers and producers based on supply and demand.
What are the three basic economic questions that every society must answer?
What to produce, how to produce, and for whom to produce.
How are goods and services typically produced in a traditional economy?
Using old methods passed down through generations (farming, hunting, and hand tools)
How are production methods chosen in a command economy?
The government decides how to produce goods, often using state-owned resources
What factors influence how goods are produced in a market economy?
Businesses choose methods based on efficiency, cost, competition, and innovation.
What is the main difference between how traditional, command, and market economies answer these questions?
Each system relies on different decision-makers: traditional economies use customs, command economies use government control, and market economies rely on individuals and businesses.
Who usually receives the goods and services in a traditional economy? Why?
The community or family; distribution is often based on social roles and needs
How does a command economy decide for whom to produce goods and services?
The government decides who receives what, often based on roles or quotas.
In a market economy, how do businesses decide for whom they will produce?
They sell to those who are willing and able to pay.
Which type of economy gives people the most freedom to choose what they want to buy or sell? Why?
Market economy, because individuals make their own economic choices.