Types of Economis
Traditional Economy
Free Market Economy
Command Economy
Mixed Economy
- people usually do the same type of work as their parents or granparents
- decisions are based off of tradition; what has always been done
EX: The native Inuit of Alaska
- Supply and demand decide what and for who will be produced
EX: capitalism
- Everything is through private individuals instead of government
- the government makes all economic decisions
- government decides what is produced, who produces it, and how much it costs
- the government owns all resources
EX: The Soviet Union, Communism
- government makes decisions for the public sector
- individuals and businesses make decisions for the private sector
- decisions are shared
EX: most governments, the United States
