TYPES OF ECONOMIC SYSTEMS

1. MARKET ECONOMY

1.1. Definition:

1.1.1. An economic system in which individuals are free to make decisions.

1.2. Examples:

1.2.1. ???

2. COMMAND ECONOMY

2.1. Definition:

2.1.1. An economic system in which decisions are made by a strong central power such as the government.

2.2. Examples:

2.2.1. Cuba

2.2.2. North Korea

3. TRADITIONAL ECONOMY

3.1. Definition:

3.1.1. An economic system that relies on customs and traditions to make decisions.

3.2. Examples:

3.2.1. Australian Aborigines

3.2.2. Inuits

4. MIXED ECONOMY

4.1. Definition:

4.1.1. An economic system that is a market based economy that incorporates government involvement.

4.2. Examples:

4.2.1. USA

4.2.2. Most modern economies