Economy Elijah B./ Jordan C./ Deanthony L.
Command Economy • An economy where supply and price are regulated by the government rather than market forces. Government planners decide which goods and services are produced and how they are distributed. The former Soviet Union, was an example of a command economy. Also called a centrally planned economy.
What to Produce • You produce what the government tells you to.
Market Economy • A system of allocating resources based only on the interaction of market forces, such as supply and demand. A true market economy is free of governmental influence, collusion and other external interference.
What to Produce What over people are willing to buy.
Traditional Economy • An underdeveloped economy in which communities use primitive tools and methods to harvest and hunt for food, often resulting in little economic growth. Traditional economies are often found in rural regions with high levels of subsistence farming. Countries that evolve their economies past the traditional level often develop into market economies or command economies.
What to Produce • Only what people there need
Thank you for watching our slide