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Types of Economic Systems

Types of Economic Systems. Paige Cantwell. Economy Types. Used throughout the world Main Types Command Economy Market Economy Traditional Economy. Command Economy. Eliminate all private property and distribute wealth and goods equally Uses within social services include equal:

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Types of Economic Systems

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  1. Types of Economic Systems Paige Cantwell

  2. Economy Types • Used throughout the world • Main Types • Command Economy • Market Economy • Traditional Economy

  3. Command Economy • Eliminate all private property and distribute wealth and goods equally • Uses within social services include equal: • Health care • Education opportunities • Access to food Examples: China, Cuba and North Korea

  4. Command Economy Advantages Disadvantages • No one is in poverty • Can change rapidly • Very stable • No sudden depression • Little freedom • "Little reason for innovation, hard work or high quality of work" • Little focus on consumer • Harder to make day-to-day changes

  5. Market Economy • Market forces are factors the predict what is right for a nation as a whole • Supply and demand • Rarely engages government Examples: United States, Japan and France

  6. Market Economy Advantages Disadvantages • Adjusts to change easily • Government is not part of business • Variety of goods and services • Poverty • Monopolies • Uncertainty and unemployment • Market failures possible

  7. Traditional Economy • Based on customs and beliefs which are placed down generations • Only produce required or wanted goods and services Examples: Papa New Guinea and Brazilil

  8. Traditional Economy Advantages Disadvantages • No waste or surplus • Only energy or supplies wasted on non essentials • Everyone knows their job • No choice in career • Lower productivity • Lower development of the society

  9. Summary Economy Types • Main Types • Command Economy • Market Economy • Traditional Economy • All types have advantages and disadvantages

  10. Types of Economic Systems Paige Cantwell

  11. Sources Information: http://socyberty.com/economics/the-advantages-and-disadvantages-of-traditional-command-and-market-economies/#ixzz25n9qDIQz http://www.economywatch.com/economy-articles/traditional-economy.html http://www.investopedia.com/terms/m/marketeconomy.asp#axzz264gN8cYs http://www.letslearnfinance.com/advantages-and-disadvantages-of-traditional-economy.h

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