Economic Systems of the World - Edl · of different Economic Systems of the World? Global History and Geography ... Types of Nations Based on Economic Systems •Capitalist Market

What are the characteristics of different Economic Systems of the World?

Global History and Geography10th Grade Boys & Girls

Friday, September 22, 2017

Economy• It is the system of administration that

determines the modes of Production and usage of goods and services in a country

• Key ideas– Modes of production and usage

– Goods & Services

Types of Economy• Traditional Economy: (Subsistence)

– One that did not change over a long period of time.

– One that supports a family– Examples:

• Traditional farming based economy / SubsistenceFarming

• Trade is barter based

Types…….cont….• Command Economy

– Means of productions and usage of goods and services are controlled by a higher authority which, usually, is a government

– Example: Socialism practiced in communist countries

• Market Economy/Capitalism/Laissez-Faire– Uncontrolled economy– Market Factors: Supply & Demand

Types….Cont…..• Mixed Economy

– Uses any combination of traditional, command and market economy elements.

– Most developing countries have this systems

Characteristics of Market Economy

• Ownership: All Property, including means of production is privately owned.

• Economic Decision: Private Businesses and individuals are free from public control so that they can make basic economic decisions, including what, where, how much, and what prices goods will be produced

• Market Controls: Prices are determined by Supply and Demand. Competition promotes high quality and low prices

Characteristics of Command Economy

• Ownership: The government owns the means of production, distribution and exchange

• Economic decisions: Government officials make all basic decisions, such a s what will be produced, when and where.

• Market Control: The government controls the economy. There is limited productions of consumer goods and an emphasis on industrial growth.

Homework• Write an essay comparing and contrasting

capitalism [market economy] and Communism/socialism [command economy]

Types of Nations Based on Economic Systems

• Capitalist Market Economy nations

• Socialist command economy nations

• Nations with mixed economy