Comparing Economies: Traditional, Command, Market, and Mixed



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Comparing Economies: Traditional, Command, Market, and Mixed

Traditional Economy

Traditional Economy

Traditional Economy

Command Economy

  • In a command economy the government makes all the decisions.
  • Governments in a command economy are usually led by a dictator and/or are totalitarian governments.

Command Economy

  • In an command economy the government owns the major industries.
  • Because of this the government controls the quantity (amount) of goods produced and there prices.
  • The government also controls the wages of the workforce producing the goods.

Command Economy

Market Economy

  • In a market economy businesses make decisions based on consumer demands.
    • Consumers and supply and demand decide what should be made.
  • There is NO government involvement.
    • Lasssez-faire: government is “hands off”

Market Economy

  • Businesses produce goods bases on consumer’s demands.
  • Supply and demand determines the price of goods.
  • In a market economy businesses are owned by individuals, entrepreneurs, and private businesses.

Market Economy

  • Examples of market economies in history:
    • England/Great Britain during the Industrial Revolution.
    • The U.S. during the Industrial Revolution.

Mixed Economy

  • In a mixed economy decisions are made by business based on consumer demands.
  • However, the government also makes some decisions:

Mixed Economy

  • Businesses produce goods bases on consumer’s demands.
  • Supply and demand determines the price of goods.
  • In a market economy businesses are owned by individuals, entrepreneurs, and private businesses.

Mixed Economy

  • Examples of Mixed Economies in History:


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