1. Economic Systems

2. What is an “Economic System”
A mechanism which deals
with the production,
distribution, and
consumption of goods and
services in a particular
society.

3. 3 Basic Economic Questions:
• What will be produced with our
resources?
• How will these goods be produced?
• For whom will we produce these
goods?

4. 4 Main Types of Economic
Systems:
• Traditional economy—an economy
that answers the four questions
based on their social customs and
how they society has deal with
these questions in the past.
• Market economy—is the type of
economy that the U.S. has and
these questions are answered in
the marketplace by the interaction
of buyers and sellers.

5. 4 Main Types of Economic
Systems:
• Command economy—is an
economy where these questions
are all answered by the
government.
• Mixed economy—is an economic
system that answers these
questions both in the marketplace
and in the government.