Economic Systems-Different Types.pdf - Traditional Command...

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Traditional, Command, & Market
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Three Little Questions When developing the economic plan, each country must ask three basic economic questions: The way a country answers these questions determines what kind of economic system it will have: Traditional Command Market
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Traditional Economy All economic decisions are based on customs, traditions, & beliefs of the past. People will make what they always made & do the same things their parents did. The exchange of goods is done through bartering. Bartering = trading without using money Some Examples: villages in Africa & South America, the Inuit in Canada, Aborigines in Australia
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Traditional Economy Let’s see how a traditional economy fits in with the 3 economic questions… 1. What goods/services will be produced? People follow tradition & make what their ancestors made. 2. How will goods/services be produced? People produce goods the same way that their ancestors did.
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