SOCIAL STUDIES

LATIN AMERICA VOCABULARY

MARKET ECONOMY

A capitalistic economic system in which there is free competition and prices are determined by the interaction of supply and demand.In a market economy the resources of a country are owned and controlled by the people of the country, rather than the government. It has little to no government involvement when determining prices.
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COMMAND ECONOMY

A socialist economic system in which production and distribution of goods and services are controlled by the government and industry is mostly publicly owned. China is an example of command economy.
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TRADITIONAL ECONOMY