Economics 101

Types of Economic
Systems Worldwide
Traditional Feudal Mercantilist Capitalist

Laissez Free-Market Command

Communist Economy
Faire Economy

Global Self- Subsistence

Socialist Interdependence Sufficient Farming
 I will teach
my kids to
Traditional Economy be farmers
too!

Based on:
• Agriculture

• Simple crafts like

pottery and cloth-
making

• Goods are exchanged

by Barter
 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
&
If I work hard I
INVESTMENT OF will get the
MONEY FOR reward!!!
PROFIT
 Communist Economy
• Economic system
where the
Government
Government
commands the
economy and there
is no private
Commands
ownership.

Economy
 Laissez-Faire
• A nation’s
economy runs
best when the
GOVERNMENT
keeps its HANDS-
OFF 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 Government
MAKES ALL
ECONOMIC
DECISIONS
&
Commands
COMMANDS THE
ECONOMY

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
All for
• Making just enough me!
crops for you and
your family

• NO SURPLUS