Types of economies

The key factor in determining the type of economy a country has is the extent of

• How much they produce

• How much is sold

• Government involvement

• Who will produce

 Each type of economy answers the three basic questions:

• the same

• differently

• With the help of producers

• With the help of consumers

 Economic decisions are based on custom and historical precedent

• Free Market

• Mixed

• Command

• Traditional

Private ownership of property/resources

• Free Market

• Mixed

• Command

• Traditional

Centrally-planned economy

• Free Market

• Mixed

• Command

• Traditional

Individuals and businesses are owners and decision makers for the private sector.

• Free Market

• Mixed

• Command

• Traditional

Government’s role is greater than in a free market economy and less than in a command economy. 

• Free Market

• Mixed

• Command

• Traditional

Lack of consumer choice

• Free Market

• Mixed

• Command

• Traditional

Most economies today, including the United States, are ______economies.

• Free Market

• Mixed

• Command

• Traditional

 Consumer sovereignty 

• Free Market

• Mixed

• Command

• Traditional