Businesses decide what they produce.
Consumers decide what they purchase., Decide if produce worth it
Often runs into problems, Few rich, many poor, Experience economic depressions, Companies choose profit over environment.
Decisions made personally, Most production for shared use by group of family, Subsistence farmers - family farming, Work for own needs, Extra produce sold/traded off., Mostly in developing countires, Profit not goal, Fading away
Government controls everything
Military dictatorship, Military leader controls everything, Many live in poverty
Traditional and Market
Traditional and command
Market and command
Primary industry, Harvest natural resources
Secondary industry, Makes commercial products from natural resouces
Tertiary industry, Provides services
Three stages, Commodity Economy- coal for energy, steel, Mass-Manufacturing Econmy-petroleum, Technology Economy
Trade deficit- more imports than exports
Trade surplus- more exports than imports
Important in global trade wars