Types of Economies Description Market Economy Mixed Economy

Types of Economies

Description Market Economy Mixed Economy Command Economy Traditional Economy Characteristics Who controls the resources ? Examples

Market Economy (aka Capitalism or Free Enterprise) § Description § People make decisions and control the resources and businesses compete without government interference § Characteristics § § § Private Property Government stays out Specialization Division of Labor Adam Smith § § Who controls resources? § People § Example Countries § United States (closest example – pure market economy doesn’t exist) Wealth of Nations Laissez-faire Invisible Hand http: //farm 1. static. flickr. com/117/274082019_032 fcb 301 a. jpg http: //anabasius. files. wordpress. com/2009/05/the-faces-of-capitalism 1. jpg

Description Market Economy People make decisions and control the resources and businesses compete without government interference Mixed Economy Command Economy Traditional Economy Characteristics § Private Property § Government stays out § Specialization § Division of Labor § Adam Smith § Wealth of Nations § Laissez-faire § Invisible Hand Who holds the power ? § People Examples § United States (closest example – pure market economy doesn’t exist)

Command Economy § Description § Who controls resources? § Government tells businesses what to do and people have little say § Government Example Countries § Characteristics § Government owns land resources § Few choices for purchase § Gov’t decides What to produce, How to produce, For Whom to produce § Karl Marx – The Communist Manifesto http: //anarchy. files. wordpress. com/2007/01/stalin. jpg § § Cuba N Korea USSR China

Description Market Economy People make decisions and control the resources and businesses compete without government interference Characteristics § Private Property § Government stays out § Specialization § Division of Labor § Adam Smith Who holds the power ? Examples § People § United States (closest § Government § Cuba § N Korea § USSR § China example – pure market economy doesn’t exist) § Wealth of Nations § Laissez-faire § Invisible Hand Mixed Economy Command Economy Government tells businesses what to do and people have little say Traditional Economy § Government owns land resources § Few choices for purchase § Gov’t decides What to produce, How to produce, For Whom to produce § Karl Marx – The Communist Manifesto

http: //www. westga. edu/~bquest/2003/discipline. JPG Mixed Economy § Description § Combines elements of a pure market economy and a command economy § Characteristics § Private Property § Government regulations § John Maynard Keynes § Keynesian Economics § Pump-priming economics § Who controls resources? § Mixture of people and government § Example Countries § United States § Great Britain http: //images. businessweek. com/ss/06/11/1109_economy/image/intro. jpg

Description Market Economy People make decisions and control the resources and businesses compete without government interference Mixed Economy Combines elements of a pure market economy and a command economy Command Economy Government tells businesses what to do and people have little say Traditional Economy Characteristics § Private Property § Government stays out § Specialization § Division of Labor § Adam Smith Who holds the power ? Examples § People § United States (closest § Mixture of people and § United States § Great Britain § Government § Cuba § N Korea § USSR § China example – pure market economy doesn’t exist) § Wealth of Nations § Laissez-faire § Invisible Hand § Private Property § Government regulations § John Maynard Keynes government §Keynesian Economics §Pump-priming economics § Government owns land resources § Few choices for purchase § Gov’t decides What to produce, How to produce, For Whom to produce

Traditional Economy § Description § Who controls resources? § An economic system based on customs and habits § Characteristics § Customs/Habits of the area § Example Countries § Developing Countries § Traditions determine occupation § No new technology § Barter system http: //www. sil. org/mexico/nahuatl/zacatlan/sup/01 f-Alfarera-nhi. jpg http: //siteresources. worldbank. org/INTTHAILAND/Images/news-events/417885 -1172720323378/2007 oct_weather-index_p 03 c. jpg

Description Market Economy People make decisions and control the resources and businesses compete without government interference Mixed Economy Combines elements of a pure market economy and a command economy Command Economy Government tells businesses what to do and people have little say Traditional Economy An economic system based on customs and habits Characteristics Who holds the power ? Examples § People § United States (closest § Mixture of people and § United States § Great Britain § Government owns land § Government § Cuba § N Korea § USSR § China § Traditions determine occupation § No new technology § Barter system § Customs/Habits of the area § Developing Countries §Private Property § Government stays out § Specialization § Division of Labor § Adam Smith example – pure market economy doesn’t exist) § Wealth of Nations § Laissez-faire § Invisible Hand § Private Property § Government regulations § John Maynard Keynes government §Keynesian Economics §Pump-priming economics resources § Few choices for purchase § Gov’t decides What to produce, How to produce, For Whom to produce