2.1 - Economic Systems - Instruction

Command economy Mixed market economy Pure market economy

- The government decides what is produced, along with how much is produced. - The government controls some aspects of the economy, such as infrastructure and transportation, while private consumers and producers control the means of production in other areas. - The government has no involvement or decision-making in what or how much is produced.

Communist countries usually have _______ economies. A command economy that still allows private property and ownership is called _________. A command economy in which the government controls everything is called _________.

- command - socialism - communism

Citizens in Cuba

- Live in a command economy - May make few economic decisions - May have few business opportunities

Citizens in the United States

- Live in a mixed market economy - Are responsible for their own needs - May be free to start businesses

Traditional economy

An economy that preserves old customs

Command Economy

An economy completely controlled by the government

Pure market economy

An economy that allows free interaction

Mixed market economy

An economy that has as little regulation as possible