2. 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.
3. 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
4. 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?
* Indicates that the country
leans that way as there are no
wholly free market economies in
practice
5. Command Economy
Centrally Controlled
Economy where the
Government makes all
decisions.
Examples:
Cuba
China
Any Communist
Country or Dictatorship
6. Mixed Economy
Economic System that
incorporates some
Governmental
involvement into a Market
Based Economy.
Examples:
*The U.S.A.?
*Japan?
Most “Modern”
Economies
