Basic Economic Systems

Command

The gov. or other central authority makes all economic decisions

Command

Individuals have little, if any, influence over economic functions

Command

Resources are owned by the gov.

Command

There is no comp; the purpose of business is to provide goods and services, not to make a profit

Command

Factories are concerned with quotas

Command

Comsumers have few, if any, choices in the market place

Command

The gov. sets the prices of goods and services

Market

Economic decisions are made by individuals competing to earn profits based on supply and demand

Market

Resources are owned by individuals

Market

Profit, not quotas, is the motive for increasing work

Market

Competition determines the price and increases the quality of products

Market

Individual freedom is considered very important; individuals have freedom to make economic decisions

Market

Also called “capitalist” economy

Mixed

Combines elements of pure market and command economies; Gov. and individuals share the economic decision making process

Mixed

Gov. guides and regulates production of goods and services

Mixed

Resources are owned by individuals

Mixed

Gov. serves to protect both producers and consumers from unfair policies and practices