Ch 2 Systems

Traditional Economy

Often includes societies where women tend crops and men hunt

Market Economy

Advantages include freedom of economic choice

Adam Smith

Market economies are based on this person's ideas

Karl Marx

Person who believed the Industrial Revolution created a system of wage slavery

Mixed Economies

Most common type of economic system

Command Economy

Often times fails because leaders don't care about local issues

Can change fast

Advantage of Command

Does not provide for everyone's needs

Failure of Market

Little uncertainty

Advantage of Traditional

Can change gradually

Advantage of Market

Little incentive to work hard

Disadvantage of Command

Low standard of living

Disadvantage of Traditional