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
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.
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.