Economic Systems

In this system, people know what is expected of them

In this system, resources can be rerouted as necessary very efficiently

This system has a group of central planners that make decisions on the 3 basic questions.

In this system, methods of production are inefficient and consumer choices on goods are rare

In this system, individuals make choices on how to use resources based on market prices

Found in the Andes Mountains, North America, Africa and Australia

Found in North Korea and China

There is no benefit to working efficiently because the government determines salaries

In this system, parents teach their children the skills their parents taught them

In this system, you may not have a choice of career

Individuals have limited freedom in answering the 3 basic questions

Those who are old/young/sick and cannot work may need the organizations to help them

In this system individuals decide for themselves how to answer the 3 basic questions

This system is also called capitalism

In this system, the 3 basic questions are answered often based on religious beliefs and customs

People have freedom in career, spend/not their income, own property or take risks for profits

In this system, individuals own the factors of production

In this system there is a voluntary exchange of goods/services between buyers and sellers

Found in Europe and the U.S.

This system focuses on stability and continuity and discourages change