Comparing Economic SystemsOnline version What are the differences in economic systems? by Aaron Stinson 1 Traditional Economy 2 Market Economy 3 Command Economy 4 Economic Questions Based on culture and tradition Things are done how they have always been done Farming, hunting, gathering herding Mostly found in poor countries economic questions are based on tradition What generations have always done before. Unorganized, may not have what you need, or it may feel unequal. What if no one has the item you are looking for? There is no “extra.” Government is not in control Market place is freely choosen Supply and demand determine price buyers and sellers determine goods People own the business Encourages entrepreneurship. Competition improves the quality of products, and keeps prices low. Competition can be a challenge for a company. Can lead to companies going out of business. Easier to be scammed/tricked. Government controls the economy People do not own their businesses Government determine how much should be produced People have very little voice in the economy Government controls production, distribution, and consumption People don’t have to make decisions or take economic risks. Less competition/conflict. One opinion instead of many. No freedom or say in decisions. No creative opportunities for people. What to produce? How to Produce? For who to produce?
New game