Economics 101 Types of Economic Systems Worldwide Traditional

Economics 101 Types of Economic Systems Worldwide

Traditional Feudal Mercantilist Capitalist Communist Laissez Faire Free-Market Economy Command Economy Socialist Global Self. Sufficient Subsistence Farming Interdependence

Traditional Economy Based on: • Agriculture • Simple crafts like pottery and clothmaking • Goods are exchanged by Barter I will teach my kids to be farmers too!

Feudal Economy • A. K. A. the Manor System or MANORIALISM • Based on Self-Sufficient manors • Local communities can take care of all of their needs • Lords provide protection and serfs provide labor

Mercantilist Economy The belief in gaining wealth by: • Gaining gold and silver • Selling more goods than they bought

Capitalism Economic system based on: PRIVATE OWNERSHIP & INVESTMENT OF MONEY FOR PROFIT If I work hard I will get the reward!!!

Communist Economy • Economic system where the Government commands the economy and there is no private ownership. Government Commands Economy

Laissez-Faire • A nation’s economy runs best when the GOVERNMENT keeps its HANDSOFF the ECONOMY

Free Market Economy • An economy run naturally by the law of supply and demand without government interference

Command Economy • Economic system where the GOVERNMENT MAKES ALL ECONOMIC DECISIONS & COMMANDS THE ECONOMY Government Commands Economy

Global Interdependence • The fact that most countries on Earth rely on each other to get things that they need.

Self-Sufficient • Being able to take care of all of your own needs YOURSELF!

Socialism Economic system where the factors of production are owned by the public and operate for the welfare of all Government should plan the economy!!

Subsistence Farming • Making just enough crops for you and your family • NO SURPLUS All for me!