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Traditional Economy Traditional economies are based on customs and habits. Goods are exchanged through bartering. People make what their ancestors did in the same way as their ancestors, and give them to people who need them. Traditional economies are very rare, but they do exist. Some examples are the Aborigines in Australia, Caste system in parts of rural India, Inuit tribes in Canada, and villages in Africa and South America. Command Economy Command economies are economies where the government makes all economic decisions, owns most of the property, and decides prices of goods, services, and wages. The government decides how goods and services are made and gives these to whoever they want. There aren't any pure command systems, but close ones are North Korea, Soviet Union, and Cuba. Market Economy Market economies are economies where production is based on supply and demand. The people own most of the resources. The businesses make decisions on what to make and how to make goods. Consumers get these goods and services. There aren't any true market economies, but the U.S.A. is very close to being one. Mixed Economies Most economies are mixed economies. Mixed economies are a mixture of a market economy and a command economy. |
Good sites to visit:
http://www.investorwords.com/6709/traditional_economy.html
http://www.economicshelp.org/blog/glossary/command-economy/
https://www.thebalance.com/market-economy-characteristics-examples-pros-cons-3305586
http://www.investorwords.com/6709/traditional_economy.html
http://www.economicshelp.org/blog/glossary/command-economy/
https://www.thebalance.com/market-economy-characteristics-examples-pros-cons-3305586