Traditional Economy

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

Command Economies • A command economy or directed economy is an economic system in which the state or workers’ councils manage the economy. It is economic system in which the central government makes all decision on the production and consumption of goods and services.

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.