Traditional Command Market Economies

Economy

Command economy An command economy is an economic system in which the state or workers' councils manage the economy. [1] It is an economic system in which the central government makes all decisions on the production and consumption of goods and services

• Its most extensive form is referred to as a command economy,[centrally planned economy, or command and control economy In such economies, central economic planning by the state or government is so extensive that it controls all major sectors of the economy and formulates all decisions about their use and about the distribution of income

Market economy • A market economy is economy based on the division of labor in which the prices of goods and services are determined in a free price system set by supply and demand.[1]

• This is often contrasted with a planned economy, in which a central government determines the price of goods and services using a fixed price system. Market economies are also contrasted with mixed economy where the price system

Traditional • A traditional economy is an economy based on custom and tradition. The economic system in which resources are allocated by inheritance, has a strong social network and is based on indigenous technology and methods.

• In this brand of economy, the closeness of the societal structure generally ensures that every member of society has a purpose and as well, a participatory function in society.