Economic SystemsAn economic system describes how a country’s economy is organized. It is a system of production, distribution and consumption. Economic systems influences the way the nation make economic choices about how the nation will use its
The four economic system Market Economy Command Economy Traditional Economy Mixed Economy
The Market Economy Individuals control production and allocation decisions through demand and supply. This economy is guided by the changes of prices that occur as the individual buyers and sellers interact in the market place.
The Command Economy The government makes all the decisions and owns most of the production. The government runs all the businesses, controls all employment, and decides how goods and services will be produced. The governmental planning determines the prices of goods and services or the wages of workers
The traditional Economy This economy is shaped by religion and customs In this economy people will always make what they always made and they will do work that they parents did.
The Mixed Economy It is an economy with both characteristics of command and market economy. The government owns and operates only selected major sources of production. Businesses own most resources and determine what and how to produce, but the government regulates certain industries.
Which economy is often used?1. Market Economy: more individual economy SUPPLY OUTPUT MARKETS DEMAND Goods Services FIRMS HOUSEHOLDS • Supply products • Demand products in output in output markets markets • Supply resources • Demand INPUT MARKETS in input markets resources in DEMAND Labor SUPPLY input markets Capital Entrepreneurs Physical Resources Information
BIBLIOGRAPHY Brooke, K. (05/09/2007). Understanding Economic Systems. Coil, B. (18/12/2008). Economic systems. David. (17/10/2009). The Economic Systems. Stevenish. (08/08/2010). Different types of economic system. Yacub. (10/02/2012). Types of economic systems.