Download Different world economies

Different World Economies
Social Studies/Economics
Introduction
Four Types of Economics
Traditional Economies
Command Economies
Market Economies
Mixed Economies
Traditional Economies
 Customs govern the economic
decisions that are made
 Traditional economies are found in
rural, non-developed countries
 Men and Women are given different
economic roles and tasks
 Economic activities are usually
centered toward the family or ethnic
unit!
Think
“Tribal” when
you think of a
traditional
economy!
Karl Marx
Karl Marx
(1818-1883)
Co-author
The Communist
Manifesto
Command Economies
 The government makes economic
decisions and determines how
resources will be used
 The government sets the prices of
goods and services
 There is little individual freedom 
government dictates the job in which
you work!
 Consumers have few chooses in the
market place  no competition!
Shortages are
common due
to poorly run
factories and
farms!
Adam Smith
Adam Smith
(1723-1790) is
considered the
father of
modern
economic theory
Market Economies
 ALL economic decisions are made by
individuals
 Resources are owned and controlled by
individuals
 Economic decisions are based on supply
and demand
 Profit is the motive for increasing work
 Competition determines price which
increase the quality of the product
Also referred
to as a 
“capitalist
economy”
Mixed Economies
 Government and individuals share the
decision making process
 Government guides and regulates
production of goods and services offered
 Role of Individuals  Own the means of
production
 Role of Govt.  Protects consumers and
workers from unfair policies
99% of the
world’s
nations today
are mixed
economies!