Identify and describe the 3 different types of Economic System.

1. Traditional Economic system

-  a system that relies on customs, history, and time-honored beliefs. Tradition guides economic
decisions such as production and distribution. Societies with traditional economies depend on
agriculture, fishing, hunting, gathering, or some combination of them. They use barter instead of money.

2. Socialist / Command Economic system

- Socialism is a type of command economic system. The state owns and controls most of the factors of
production, including land and capital goods. ... Production of goods and services, as well as their prices
and distribution, are centrally controlled by the state.

3. Capitalist / Market Economic system

-Capitalism is an economic system in which private individuals or businesses own capital goods. The
production of goods and services is based on supply and demand in the general market—known as a
market economy rather than through central planning known as a planned economy or command
economy.

Define the following terms:

1. Market location - A market location is where the company sells its products. Choosing the right one is
important as it affects sales and profits, and the resources consumed. Also, each location has inherent
advantages and risks.

2. Command Allocation - In a command economy, macroeconomic and political considerations

determine resource allocation, whereas, in a market economy, the profits and losses of individuals and
firms determine resource allocation. Command economies are concerned with providing basic
necessities and opportunities to all members.

3. Mixed Allocation - Mixed economy, in economics, a market system of resource allocation,

commerce, and trade in which free markets coexist with government intervention. A mixed economy
may emerge when a government intervenes to disrupt free markets by introducing state-owned
enterprises (such as public health or education systems), regulations, subsidies, tariffs, and tax policies.
Alternatively, a mixed economy can emerge when a socialist government makes exceptions to the rule
of state ownership to capture economic benefits from private ownership and free market incentives. A
combination of free market principles of private contracting and socialist principles of state ownership
or planning is common to all mixed economies.