Economic Systems

By: Naquasia Grimes

Command

In A Command Economy,The Central Authority(Government) Is In Charge And Makes All Economic Decisions.The most important aspect of this type of economy is that all major decisions related to the production,distribution,commodity and service prices,are all made by the government or central authority.

Traditional

In a traditional economy things are done as they have been done in the past(traditionally).The economic system in which resources are allocated by inheritance,and which has a strong social network and is based on primitive methods and tools.It is strongly connected to subsistence farming.

Market

In a market economy,consumers are in charge and make economic decisions by spending money on goods and services they need/want.In a market economy,national and state governments play a minor role.Consumers and their buying decisions drive the economy.The assumptions of the market play a major role in deciding the rigjht path for a country's economic development.