The document discusses three main types of economic systems: traditional, command, and market economies. Most countries have mixed economies that incorporate elements of both market and command systems. Economic systems can be viewed along a continuum, with pure market economies having the most individual freedom and pure command economies having no individual freedom. The document argues that market systems have proven most effective at promoting economic goals like growth, freedom, and efficiency by allowing citizens to own property and use it efficiently. While command and traditional systems may offer more security, they are less efficient and do not foster growth or freedom as strongly as market systems.

1. EconomicEconomic
Systems andSystems and
Line ofLine of
ContinuumContinuum

2. Three Types of EconomicThree Types of Economic
Systems:Systems:
 1. Traditional Economy1. Traditional Economy
 2. Command Economy2. Command Economy
 3. Market Economy3. Market Economy
 * Most countries are…* Most countries are… Mixed EconomiesMixed Economies!!
(Market + Command)(Market + Command)

3. Continuum of EconomiesContinuum of Economies
Most
Individual
freedom
No
Individual
freedom
Pure
Market
Pure
Command
Most economies fall in between a pure
market and a pure command economy
on the continuum

4. Economy ContinuumEconomy Continuum
Command Market
Cuba
Russia Germany
US
Australia
UK

5. Which Economic System Is Best?Which Economic System Is Best?
 Market system has proven to be bestMarket system has proven to be best
because it promotes the goals of growth,because it promotes the goals of growth,
freedom, & efficiencyfreedom, & efficiency
 Citizens are free to own their own property andCitizens are free to own their own property and
use it in the most efficient and profitable wayuse it in the most efficient and profitable way
 Command and Traditional systemsCommand and Traditional systems
sometimes offer more security, but are notsometimes offer more security, but are not
nearly as strong in efficiency, growth,nearly as strong in efficiency, growth,
freedom, and environmental qualityfreedom, and environmental quality

6. DirectionsDirections
 Complete the Positives and Weaknesses ofComplete the Positives and Weaknesses of
each Econ System using your resourceseach Econ System using your resources
 Answer your Question Strip questions.Answer your Question Strip questions.
Complete for HW (Page 5)Complete for HW (Page 5) if you do notif you do not
finish in class.finish in class.
 Finish VocabFinish Vocab

7. DirectionsDirections
 Complete the Positives and Weaknesses ofComplete the Positives and Weaknesses of
each Econ System using your resourceseach Econ System using your resources
 Answer your Question Strip questions.Answer your Question Strip questions.
Complete for HW (Page 5)Complete for HW (Page 5) if you do notif you do not
finish in class.finish in class.
 Finish VocabFinish Vocab