Professional Documents
Culture Documents
Objective
What is Economics?
Land
Factors of Production
Economic Resources
Economy
Market Economy (free enterprise)
Command Economy
Mixed Economy
Traditional Economy
Vanuatu
Pygmies of Congo
Eskimos & Indian tribes
Belarus
Command Economy
Strong Command
where government
makes all decisions
(communism China,
Cuba)
Moderate Command
where some form of
private enterprise exists
but the state owns major
resources (socialism
France and Sweden)
Advantages
Disadvantages
Guarantees equal
standard of living for
everyone
Less crime and poverty
Needs are provided for
through the government
Minimal choices
Fewer choices of items
No incentive to produce
better product or engage
in entrepreneurship
Mixed Economy
Combination of a
market and a
command
economy
Government
takes of peoples
needs
Marketplace
takes care of
peoples wants.