Economic Systems

The Basics: Cornell Notes

On the left hand side of your paper, write the name of the type of the economy.

On the right hand side of your paper, write the bullets.



  • hunt and farm
  • barter with each other
  • don't compete with each other
  • work together to meet the needs of the people in the community.

Customs and traditions and the environment determine what is made.

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Individuals and businesses

  • own property and resources
  • decide what to make and how much of it to make
  • consider what is in demand, because they want to make whatever will sell
  • want to make a profit.

There is no government interference.

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The government

  • owns the property, factories, transportation, and resources
  • makes all economic decisions: what to make and how much to make.

There is no competition and consumers have little choice.

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Individuals and businesses own most of the property and resources.

The government

  • owns some property and resources
  • provides some goods and services
  • helps businesses by providing incentives and subsidies
  • makes rules to protect businesses and consumers.

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Adding to our Knowledge
SAS video

As you watch the video lesson, add to your Cornell Notes:


which system does not use money

which system is also known as "centrally planned"

which system is associated with Karl Marx and Communism

which system is associated with Adam Smith and Capitalism

an example of where each system is used

Try the Quiz to check your comprehension.

Dig a Little Deeper

Watch the video at EDPUZZLE and answer the questions.

What do YOU think?

Imagine you are creating a society on  a newly discovered planet. Which economic system would you suggest be used and why? Explain in the COMMENT STREAM below.

Comment Stream