economic systems

economic systems

traditional, socialist, traditional and command

what is an economic system

organized way in which a country handles its economic decisions?

economic questions

how will products be allocated? what will be produced? How will products be produced?

elements of all economic systems

resources, markets, participants and medium of exchange (money)

why we need economic systems

wants are unlimited but our resources are not

noneconomic wants

friends, happines, going to a park

economic wants

car, fast food

interdependent

depending on each other (producer+distributor_

example of traditional economy

villages, communities,

command economies

government controls all planning and decisions (communist)

cmmunist gov

set wages, no investments

communist gov examples

North Korea, Cuba, china, Soviet union

socialism (welfare states)

SOME means of production, high taxes

examples of socialism

sweden, Denmark and canada

market economy

indiiduals own means of production, businesses compete

market economy examples

US, Japan, India

traditional economues

IN THE SAME WAY as tradition, split for whoever needs it