Characteristics of Economic Systems

Based on individual choice and voluntary trade

• Market

• Command

• Traditional

• Communism

Encourages competition between businesses

• Command

• Market

• Traditional

• Communism

Customs have been passed down through generations

• Command

• Market

• Traditional

• Native Americas

Government leaders answers the three basic economic questions

• Command

• Market

• Traditional

• Democracy

Bartering (Trading) for goods replaces the need for currency (money)

• Command

• Market

• Traditional

• Currency

Businesses are privately owned by the people

• Command

• Market

• Traditional

• Autocratic

Social roles and customs determine how goods are made, sold, and bought

• Command

• Market

• Traditional

• Democracy

Examples: Mexico, United Kingdom, Canada

• Command

• Market

• Traditional

• Autocratic

Type of economy in communist countries

• Command

• Market

• Traditional

• Democracy

Examples: Cuba, North Korea, and the former Soviet Union

• Command

• Market

• Traditional

• Democracy