The Four Economic Systemsb

26,231 views
26,063 views

Published on

Published in: Business, Technology
2 Comments
23 Likes
Statistics
Notes
No Downloads
Views
Total views
26,231
On SlideShare
0
From Embeds
0
Number of Embeds
730
Actions
Shares
0
Downloads
6
Comments
2
Likes
23
Embeds 0
No embeds

No notes for slide

The Four Economic Systemsb

  1. 1. Objective: To cover the four types of economic systems
  2. 2. Three Basic Questions of Economics <ul><li>Nations like people have to make choices about what to produce </li></ul><ul><li>They must answer three questions </li></ul><ul><li>What goods and services should be produced </li></ul><ul><li>How should these goods and services be produced </li></ul><ul><li>Who will get the goods and services </li></ul>
  3. 3. Economic System <ul><li>An economic system is the rules a country follows in answering the three basic questions. </li></ul><ul><li>The four types of economic systems are: </li></ul><ul><li>Traditional </li></ul><ul><li>Command </li></ul><ul><li>Market </li></ul><ul><li>Mixed </li></ul>
  4. 4. Traditional System <ul><li>Is based on what was done in the past </li></ul><ul><li>Very primitive and simple </li></ul><ul><li>Everyone shares equally in goods and services </li></ul>
  5. 5. Command Economy <ul><li>Government decides what is best for the people </li></ul><ul><li>Government controls land, labor, capital </li></ul><ul><li>Government decides who will work, where they will work, and what will be made </li></ul><ul><li>Finally government decides who will receive the goods and services </li></ul>
  6. 6. Market Economy <ul><li>Is the opposite of a command economy </li></ul><ul><li>Each person answers the three basic questions for themselves </li></ul><ul><li>The most important part is that goods and services are bought and sold freely </li></ul>
  7. 7. Mixed Economy <ul><li>Most nations today have a mixed economy </li></ul><ul><li>A mixed economy is one that is part command and part market economy </li></ul><ul><li>U.S.A. has a mixed economy </li></ul>

×