Berjamin, Ezra Shane L.

BSM21
1.) The Traditional economic system
A traditional economic system is the best place to start because
it is, quite literally, the most traditional and ancient type of
economy in the world.
it is based on agriculture, fishing, hunting, gathering or some
combination of the above.
it may use barter instead of money.
It is guided by tradition
Examples:
Africa
Latin America
Middle East
2.) A Market economy is where economic decisions are made by the
free market. That means production of goods and services are
regulated by the laws ofsupply and demand. Producers sell their goods
and services at the highest possible price that consumers are willing
and able to pay. Workers also bid their services at the highest possible
wages that their skills allow.
Examples:
Mexico
United States
United Kingdom
Germany
Canada
3.) A Command economy is where economic decisions are planned out
in detail by a central government authority. The plan is implemented
through laws,regulations and directives. Businesses follow production
and hiring targets instead of individually and freely responding to the
laws of supply and demand. Central planners seek to replace the forces
that operate in a market economy, and the customs that guide
a traditional economy, to attain specific societal goals.
Examples:
China
Cuba
North Korea
Soviet Union

Berjamin, Ezra Shane L.

BSM21

4.) A Mixed economy seeks to have all the advantages of a market,

command and traditional economy with little of the disadvantages.
Therefore, most mixed economies have three of the six characteristics
of the market economy: private property, pricing and individual selfinterest. Mixed economies also have a command economy in certain
areas. Most allow government to have a command role in areas that
safeguard the people and the market itself. This usually includes the
military, international trade, and national transportation. An increased
governmental role depends on the priorities of the people. Many mixed
economies also allow centralized planning and even government
ownership of key industries, such as aerospace, energy production and
even banking. Some mixed economies encourage the government to
centrally manage health care, welfare, and retirement programs.
Examples:
Norway
Sweden