Types of Economies!
Economic food for your brain! :D
Traditional Economy
In a Traditional Economy the customs and habits of the past are used to decide what and how goods will be produced, distributed, and consumed.
People know early in life what type of job they are going to have.
Their careers are based on what their parents do.
Command Economy
A Command economy is when the government makes the basic economic decisions
Market Economy
In a Market economy, decisions are guided by changes in prices that occur between individual buyers and sellers in the marketplace.
Note: I could not find a good market economy picture because most were insufficient*, so instead I give you a kitteh :3
*and by insufficient I mean government conspiracies or ideas such as IRS taking money.
Mixed Economy
However….There are no “pure” market or command economies anymore… now countries have Mixed economies.
This means that countries have a “mixture” of both command and market economies.