1. Understand economic systems. Economic Systems
Objective 1.01
Understand economic systems.
Economic Systems

2. Topics
Main types of economic systems

3. What are the three economic questions that all economies must answer?
Economic Systems
What are the three economic questions that all economies must answer?
All economies must answer three economic questions.
What to produce?
How to produce?
For whom to produce?

4. Economic Systems
What to produce?
How to produce?
For whom to produce?

5. Economic Systems
An economic system is a nation’s plan for answering the three economic questions.
What to produce?
How to produce?
For whom to produce?

6. Economic Systems The main types of economic systems are:
Command or Communist
Market
Traditional
Mixed

7. Economic Systems
Who owns the resources in the main types of economic systems?
Command
Market
Traditional
Market Place: Where goods and services exchange hands.
Centered on family
Government
The people
A command, or communist, economy is an economics system in which the government owns resources and dictates what is produced.
A market economy is an economics system where goods and services are owned and controlled by the people.
A marketplace is anywhere that goods or services exchange hands.
In a traditional economy, goods and services are produced the way it has always been done (customs) and centered on family.
A mixed economy combines the elements of the command and market economies.

8. Economic Systems Command Economy
The government owns resources and dictates what is produced. (Communist governments have command economies)
China
Cuba
North Korea

9. Economic Systems Market Economy
Goods and services are owned and controlled by the people.
United States
United Kingdom

10. Economic Systems Traditional Economy
Goods and services are produced by custom, tradition, and belief systems and controlled by the family.
Third World and developing countries:
Ethiopia
Uganda
Afghanistan

11. Economic Systems Mixed Economy
Elements from the command and market style. Decisions are made by government and people.