FOUR TYPES OF ECONOMIES by pptfiles

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									                                                 FOUR TYPES OF ECONOMIES

                               How are the
                Definition        three            Growth         Who / What     Example of       Who loses       Political
                                economic                        influences the   this type of    power in this   Philosophy
                                questions                         economy?        economy          type of       and People
                               answered?                                                          economy?

Traditional    Economic         By tradition          Not         Tradition         Tribes           n/a            n/a
Economy       system that                         concerned
                relies on                            with
               habit and                            growth
                 custom

              Central govt.
Command /        makes all     Whatever the          Slow       Government         Cuba            Citizens      Communism
 Centrally     decision on    govt. decides is      growth,     has complete     North Korea                      Karl Marx
  Planned           the        need at the        inefficient      control           Iran
 Economy       production       least cost                                                                        Socialism
                    and          method                                           1920-1991
              consumption                                                        Soviet Union
                 of goods
                Economic
Free Market      system is    What? – most        Successful        Citizens     United States   Government       Capitalism
 Economy         which all      profitable           and          Supply and         (EOC                        Adam Smith
                economic       How? – least        efficient       demand         ANSWER)
              decisions are    cost method                       Competition
              made by the      For Whom? –                      Invisible Hand   Hong Kong
                  citizens    Highest bidder
                  Market                                                         Technically
  Mixed           based         Govt. and           varies      Part citizen /    the US is a       varies          John
 Economy      economies in       Citizens                        part govt.         mixed                         Maynard
               which govt.                                                        economy                          Keynes
                  plays a                                                        France, UK,
               limited role                                                        Canada

								
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