ECONOMIC SYSTEMS

TYPES OF ECONOMY

TRADITIONAL ECONOMY- goods and services are traded, but money is rarely exchanged. This process is called ''barter'', and is the oldest economic system. It is rarely used today

COMMAND ECONOMY- Production of goods and services is decided by a central government. The government usually owns most of the resources and businesses that make the products or provide the services. This type of economy is also called planned economy.

MARKET ECONOMY- when the production of goods and services is determined by the supply and demand of consumers is called a market economy. It is also known as a demand economy, or capitalism. This is the type of economy my found in the U.S.

Mixed economy- in this economy, a combination of China mm and and market economies provides goods and services.

GLOSSARY

• Government- a group of elected officials.
• Goods- edible items and other house hold items like jewelry and decorations.
• Barter- trading food and services.