Types of Economic Systems

Traditional Economy
All goods and services produced by people are consumed in their own family or village. You grow it You eat it Very little excess goods, resulting in no trade with other communities. There is no government influence on the economy. In what parts of the world would you find this economic system?

Market Economy
Private groups of individuals, or corporations, control what will be produced, how much will be produced, and the prices the goods will cost Decisions are made according to supply and demand. Government has little involvement in the economy, although they do provide goods and services. Ex: Postal Service, highways, public schools Government plays a limited role in regulating business Goods and services are made available for the public

Market Economy

Command Economy
Economy is controlled by a single, central government. All economic decisions are made by government officials. (Authoritarianism) The government decides what goods will be produced, what the cost of the goods will be, and how much of the goods and services will be produced. Example: Communism

Command Economy