2. Vocab to be Covered
• Market Economy
• Traditional Economy
• Command Economy
• Mixed Economy
3. Economic Systems
• Key Actors:
• Government
• Consumers (People)
• Businesses
• Determines the ways the actors interact in
an economy
4. Market Economy
• Consumers and Producers decide how
resources are used and distributed
• Businesses compete for business
• If you don’t run an efficient business,
then you fail
• Government does not interfere
5. Traditional Economy
• Based on the traditional roles from past
generations
• Economic growth is not important
• Governments plays a small role and values
occupational roles, not economic growth
• Occurs locally, not nationally
6. Command Economy
• Government leaders decide how goods will
be produced by setting national
production goals and prices
• Governments have the MOST control
over a country’s economy
• Some nations adopt command economies
during war to focus resources on essential
industries
7. Mixed Economy
• The United States has a mixed economy
• Individuals and businesses answer the basic
economic questions, such as supply and
demand
• Government can still regulate business
• taxes
• laws and regulations
