Download Economic Terms - Fort Bend ISD

Economic Terms
Economic Terms
Traditional Economy Individuals and families decide what to produce
and how much based on their needs.
Example: Inuit people of Northern Canada
Market Economy (capitalism) The owners of businesses decide what to
produce and how much; price is based on the market.
Example: The United States
Command Economy (socialism) The government decides what and how
much to produce, and determines prices.
Example: North Korea
Mixed Economy This is a combination of market and command
economies.
Example: The United States