Government controls production, distribution, and consumption
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.”
No freedom or say in decisions. No creative opportunities for people.
Encourages entrepreneurship. Competition improves the quality of products, and keeps prices low.
buyers and sellers determine goods
economic questions are based on tradition
Based on culture and tradition
Supply and demand determine price
People have very little voice in the economy
People own the business
For who to produce?
Competition can be a challenge for a company. Can lead to companies going out of business. Easier to be scammed/tricked.
What generations have always done before.
Mostly found in poor countries
How to Produce?
Government is not in control
Market place is freely choosen
People do not own their businesses
What to produce?
Things are done how they have always been done
Government controls the economy
Government determine how much should be produced
People don’t have to make decisions or take economic risks. Less competition/conflict. One opinion instead of many.
Farming, hunting, gathering herding
