ECONOMIC SYSTEMS

TRADITIONAL ECONOMY

• The people in the economy make all economic decisions
• ADVANTAGES- no waste, no restrictions, and stability
• DISADVANTAGES-
• vulnerable to natural disasters, lack of growth, and limited amount of resources
• A Country that runs under a traditional economy is Bangladesh.

MARKET ECONOMY

• Consumers and producers make economic decisions
• ADVANTAGES - freedom of choice, participation, & self regulation
• DISADVANTAGES - no protection, regulations, and risk.
• A country thst runs under a market economy is Singapore.

MIXED ECONOMY

• Consumers, producers, and government make economic decisions
• ADVANTAGES - freedom, regulations, and balance.
• DISADVANTAGE - loss of tradition
• A country under a mixed economy is USA
• A mixed economy is thought to be the most effective economy.

COMMAND ECONOMY

• Government makes all economic decisions
• ADVANTAGES - low unemployment, high efficiency, and fixed pricing
• DISADVANTAGES - corruption, no competition, and no freedoms
• Countries under a command eceonomy are China, Cuba, & North Korea
• Also known as a centrally planned economy.