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Economic Systems
• Traditional (barter)
• Command
• Free Market
• Mixed
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Traditional
Advantages? Disadvantages?
Eventually out of need, what was invented?
Advantages? Disadvantages?
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Eventually money was produced• Motivation for a form of money?
• A lot easier to carry some form of
vs
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Command Economy
Govt makes ALL economic decisions
Pros of Communist system Cons of Communist system
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Pros and Cons of Command economy?
http://www.time.com/time/specials/2007/article/0,28804,1658545_1658533_1658030,00.html
http://www.deere.com/en_US/docs/zmags/residential/online_brochures/rle_literature/static/d100_series.html
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Free Market Economy
• No govt involvement.
• Prices, wages, etc determined by “Invisible Hand” – i.e. Law of Supply and Demand
Pros? Cons?
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Mixed Economy
• Combines elements of Command and Free Market
• Very common economic system today– U.S., Britain, Germany, etc
Pros? Cons?