Economy Systems Traditional Economy In a Traditional Economy, how are economies decisions made? Custom and Habits Some Traditional Economies are found in Rural areas where people depend on members of their extended families. In Rural areas work is often subsistence farming, herding animals, or working in simple crafts and trades. Command Economy In a Command Economy , how are economies decisions made? Govt. planners . What would be a problem in a Command Economy? Individuals trying to start new business . A central planning group decide which goods and services should be produced. Market Economy In a Market Economy, who makes the economies decisions? Consumers and the Market The person who takes the financial risk when starting a business is the entrepreneur.