Review of Different Economies

Types of Economies
-Traditional: economic system in which decisions are made based upon customs, beliefs, habits, and religion
       Defined by 3 Characteristics:
            1) Based on agriculture, fishing, hunting, gathering or combination of the three
            2) Guided by traditions
            3) May use barter instead of money
   Example: Most countries in Africa (Malawi)
-Communist: economy is fully operated under governmental control; Government answers all the fundamental economic questions
       *Goods and services provide for the NEEDS of the consumers NOT the WANTS
   Example: Cuba, North Korea
-Market: economy in which prices and wages are determined by supply and demand, rather than by the government
       *Regulated by market forces
   Example: Only TRUE market economy is Hong Kong
-Mixed: economic system that incorporates a mixture or private and government control
      *Mixture of capitalism and socialism
   Example: United States

The Four Types of Economic Systems from Brian Coil