1. REVIEW:
Economic Systems
Economy Continuum

2. Traditional Economy
• An economy where
people continue their
family traditions and do
what their ancestors.
• They use barter (trade) to
exchange goods and
services.
• Ex: Native peoples

3. Command Economy
•An economic system where the
government owns everything and
makes all the decisions.

4. Market Economy
• An economy where businesses have choices and
the market is driven by prices, supply, and
demand.
• Ex: U.S.A

5. What is a Mixed Economy?
• A “Mixed Economy” is somewhere between
command and market.
• A Mixed Economy is where business get to
make choices but there is some
government regulation.
• Most modern economies are a bit mixed
because they have some government
control.
• There are no pure command or market
economies in the world.

6. Government Regulation
• Some government control is good
because it puts standards in
place and protects the public.
• Examples:
• Government regulates
transportation such as airlines and
trains.
• Government regulates food
supplies.
• Government regulates drugs

7. Economy Continuum
• Most countries lie somewhere in between a
command and market economy.
United Australia
Russia Kingdom
Cuba
Germany U.S.A.
Command Market
There are no pure command or market economies.