Economic Systems

Mother country exploits natural resources of colony

System was established during the Commercial/Industrial Revolution

Laissez faire

Government does not interfere with economy 

First written about by Adam Smith

Businesses set prices based on consumer need, with the idea of supply and demand

Based on the use of capital (money); goal is to make as much profit as possible. 

No private property

Prices are set by the government, not governed by supply and demand

All basic resources are provided (job, housing, clothing, food)

Economic system developed during the Age of Exploration

System created during the Industrial Revolution in response to the injustices of Capitalism 

Desires a favorable balance of trade (selling more goods than buying)

All people are paid the same and provided the same basc resources

Has a free market economy

Economic system that motivated Imperialist countries 

The people own the means of production, but the government makes all decisions

People have the right to private property

Created by Karl Marx