1. Why are we learning about
economies?
• Because economies have a huge impact on
the way people live!
• Occupy movements/ Election

2. Which economic term is used to
describe a lack of a particular
resource, such as water, food, or oil?
A supply
B demand
C scarcity
D surplus

3. System Who decides what to
produce?
Who decides how to
produce?
Who decides
who is going
to produce?
Key Words
and
Examples
Traditional
Command
Market
Mixed
Economic Systems

4. System Who decides what
to produce?
Who decides how
to produce?
For whom to
produce?
Traditional
- Customs and
traditions of the past
are used to
determine what
goods to produce
- Customs and
traditions of the past
are used to determine
how to produce
goods
-Jobs are handed
down from
generation to
generation.
-People produce
what they need
to survive
If your father and grandfather were farmers
then YOU would be a farmer

5. Traditional
Economies
Key Words and examples
• Tradition
• People barter
• Examples: parts of Africa,
the Aborigines in Australia,
parts of Latin America

7. In a traditional economy what decides what people
produce?
a. Supply and demand
b. The government
c. Traditions and customs
d. Teachers

8. System Who decides what
to produce?
Who decides how
to produce?
For Whom to
Produce?
Command
-The governments
decides what the
country is going to
produce
-The government
regulates production
of all goods
-The government
decides how the
country will produce
their goods
-The government
regulates ALL
industries
-The government
decides for whom
to produce
- The government would decide who would be farmers, what
they would grow, and how much would be turned over to the
government.

9. Command Economies
Key Words and Examples
• The government makes all
economic decisions
• Communism
• Examples: Cuba, North
Korea, any communist
country

11. The economic system of communist countries is most
closely related to which of the following:
A Command economy.
B Market economy.
C Traditional economy.
D Mixed economy.

12. System Who decides what to
produce?
Who decides how to
produce?
For Whom to
produce?
Market
Consumers decide what
goods will be produced,
because they are the
“need” for the goods
Individuals and
businesses will make
products, and provide
services that will earn a
profit.
Prices and profit
are determined by
supply and
demand.
“Consumers are
king!”

13. Market Economies
Key Words and Examples
• Same as capitalism –
economies based on free
trade (competition or the
right to make a profit)
• Examples of this Economy:
No true market economies,
but United States and
United Kingdom are closest

14. A market economy is very different from a
command economic system or a traditional
system. Which of the following is found in a
market economy?
A Free labor
B Free enterprise
C Government control of industry
D Government control of agriculture

16. System Who decides what
to produce?
Who decides how
to produce?
For whom to
produce?
Mixed
- The citizens decide
what goods the
country will produce
-Citizens, prices, and
profits all decide how
goods are going to be
produced
-The Government also
regulates some
industries
-There is free
enterprise so the
citizens have to
compete for
production
Examples and key words:
- Free enterprise but some government
control
France, Spain, and most nations