*Economy Systems*

By:Chyna Bryant

***There are (3) basic types of Economic systems.***

1.)Traditional Economy

*Allocation

*Traditions, customs, beliefs

"Subsistence economy" or "economy of the Ingenious population.

***Characteristics***

*Barter and trading systems.

*Process of production and distribution system.

*Needs of each households.

*Family nature.

*Nature.

*Prehistoric instruments and techniques.

*Primitive human occupations.

*Surplus food productions.

2.)Command Economy

*Economy directed by the government.

*All means of production (land, labor, capital) are state owned and controlled.

*The government makes all economics choices of what to produce, how to produce, how to distribute.

*All means of production (land, labor ,capital) are state owned and controlled.

*The government makes an economic choices of what to produce, how to produce, how to distribute.

3.)Market economy

*In a Market economy, consumers are in charge and make economic decisions by spending money on goods and services they need/want.

*In a Market economy, national and state governments play a minor role.

*Consumers and their buying decisions drive the economy.

*The assumptions or the Market play a major role in deciding the right path for a country's economic developments.

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