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ECONOMIC SYSTEMS

Different Types of . ECONOMIC SYSTEMS. What does “ECONOMIC SYSTEM” mean?. It is the way in which a country manages the production and distribution of goods and services . All economic systems must answer the same basic economic questions of :. WHAT TO MAKE?. HOW TO MAKE IT?.

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ECONOMIC SYSTEMS

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  1. Different Types of ECONOMIC SYSTEMS

  2. What does “ECONOMIC SYSTEM” mean? It is the way in which a country manages the production and distribution of goods and services. All economic systems must answer the same basic economic questions of : WHAT TO MAKE? HOW TO MAKE IT? WHO GETS IT? Open your books to page 32, please. “Balancing Our Wants and Needs”

  3. ECONOMICS SYSTEMS – Notes—Write only the underlined sections in your journal! TRADITIONAL ECONOMIES: The share of wealth is determined by custom or one's position in society. Children learn the “family trade”—families do the same kind of work, generation after generation. So, custom or tradition answers the basic economic questions. The Tuareg—a nomadic people COMMAND ECONOMIES: The people or individuals have very little say as to how the basic economic questions are answered. The government makes all the decisions about what to produce, how much to produce, and what to charge. MARKET ECONOMIES: What is produced and what each person does is based on the activity within the market. Buyers and sellers (individuals) decide for themselves what goods and services will be produced based upon supply and demand in the market.

  4. MIXED ECONOMIES The reality is most nations have mixed economies. For example, the USA has a mostly market economy, but the government does get involved at times with regulations and rules for certain industries. The Chinese have a mostly command economy but are moving towards a market system by allowing some private businesses to operate. REMEMBER!!! All economic systems must answer the same 3 basic economic questions of : 1) WHAT TO MAKE? 2) HOW TO MAKE IT? 3) WHO GETS IT? The answers to these questions tell you what kind of economy it is!!!

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