Economic Systems

The Four Types

The Four Types of Economic Systems
 Four very different types of Economic
Systems have evolved as different societies
have placed different emphasis on different
goals and priorities in their efforts to answer
the Three Key Economic Question.
Traditional Economy
 Family or Community
based Economic
System that relies on
custom and ritual to
make its choices.
 Examples:
 Aborigines
 Amazon Tribes
 Any Substainance
Economy
Market Economy
 Individual or Consumer
based Economic
System that relies on
the consumption
choices of consumers.
 Examples:
 *The U.S.A.?
 *Japan?
 Any Capitalist
Economy?
Command Economy
 Centrally Controlled
Economy where the
Government makes all
decisions.
 Examples:
 Cuba
 China
 Any Communist
Country or Dictatorship
Mixed Economy
 Economic System that
incorporates some
Governmental
involvement into a Market
Based Economy.
 Examples:
 *The U.S.A.?
 *Japan?
 Most “Modern”
Economies