Mga Bansa

O Built upon traditional customs and beliefsO Centers around agriculture, hunting, fishingO Barter and trade is often used in place of

money.O Often, people in a traditional economy live

in families or tribes.

TRADITIONAL ECONOMY

ExamplesO Tribal/ Nomadic Communities

The bartering of hunted prey used by the Inuit tribes in northern Canada is an example of a traditional economy.

O African Countries

Obased on market determined supply and demand

Oprices of goods and services are determined in a free price system

OPrivate ownership, the government does not own the businesses

MARKET ECONOMY

ExamplesO United States of

AmericaO The “United”

Kingdom

Command EconomyO The government creates a central economic

plan for all sectors and regions of the countryO The government allocates all resources

according to the central planO The central plan sets the priorities for the

production of all goods and services.O “Opposite” of the Free market economy

O The Soviet Union O North Korea

Examples

O ownership of goods by both private and government/state-owned entities

O part of the economy is left to the free market, and part of it is run by the government.

O Mixed economies start from the basis of allowing private enterprise to run most business. Then the governments intervene in certain areas of the economy, such as regulation, and spending money on public services.

Mixed Econom

y

O France O Sweden

Examples