It's all about The choice of an economic system. You can see the types of economy. (Traditional, Market,Command and Mixed Economy)

1. CHAPTER 6:
THE CHOICE OF AN
ECONOMIC SYSTEM
REGENCIA,REANNA CHRISTINE

2. ECONOMIC SYSTEM
- An economic system is a response to
concrete circumstances faced by the
people. Since, circumstances vary from one
place to another, it follows that there is no
ideal economic system.

4. *The best economic system is whatever
suits the unique needs of a country, as long
as the principles of the natural law are
respected.

5. TYPES OF ECONOMIC SYSTEMS:
• Tradition Economy
-is based on culture and tradition.
• Command Economy
-is an economy where government plays the important role
• Market Economy
-is an economy where private individuals take their own decisions with less
government intervention.
• Mixed Economy
-is a combination of both the economies-both the government as well as the private
individuals take decisions.

6. TRADITIONAL ECONOMY
Defined in 3 characteristics:
Based on agriculture, gathering
Guided by tradition
Used of barter system instead of money

7. The question of what to produce is not difficult because the need of primitive
society revolve mainly around the most basic items like food, clothing & shelter.
*The traditional economic system is the simplest, with no explicit rules, because the needs of
the people are simple, revolving around the basic items

8. WHITE COLLAR MANIA
• The numerous remnants of tradition in our economic system is the
choice of career. There are still a few parents who want their
children to follow their professional or occupational footsteps.
• White collar is usually perform job duties in an
Office setting
Blue Collar are people who do manual labor

9. THE EXTENDED FAMILY
This is the practice among Filipino heads of families
to consider relatives, whether close or distant to be
within the sphere of their economic responsibilities.

10. RETAINING DESIRABLE TRADITIONS
• Extreme care and prudence must be exercised by
society in deciding what to do with existing
traditions. One must learn to discriminate between
the desirable and the undesirable traditions

11. COMMAND ECONOMY
• Is one which decisions are handed down from the top authority.
The orders come from an “economic commander-in-chief” or they
may be proclaimed by a committee or a party, as in the case of
Communist Party. The government regulates prices and wages; it
may even determine what sorts of work individuals do.

12. MARKET ECONOMY
• An economy in which the greater part of production
and distribution, is controlled by individuals
and privately owned corporations rather than by the
government.

14. THE PESO VOTES
• Problems: What to produce and What quantities to
produce.
• The consumers are asked to cast their votes for
different goods and services. These votes are, of
course, the money that they are willing to spend.

15. WHAT EXACTLY ARE THESE SIGNALS THAT THE PRODUCERS WATCH?
HIGH
PROFITS LOW

16. MIXED ECONOMY
• Combines elements of the market and command
economy. Many economic decisions are made in
the market by individuals. But the government also
plays a role in the allocation and distribution of
resources.