Types of Economies
ELABORATE
Scenario
 You have been chosen as a contestants on the
next season of a survival-based reality TV
show. A packet arrives in the mail explaining
the details of your contract. You may not bring
any items with you on the journey. They have
provided you with a form to complete where
you need to create your “Survival Wish-List”.
 Consider what your true basic necessities are
to survive; these are your NEEDS. Think of
that items might be useful to make the
conditions more bearable; these are WANTS.
Your Survival Wish-list
Items I need to survive
Items I want to make
life better
Think About It:
 What items are “needs”- things we must
have to survive?
 What were some items that were
“wants”- things that improve our quality
of life?
Items I need to Items I want to
survive
make life better
Types of
Economies
HOW PEOPLE GET WHAT THEY NEED:
FOOD, HOMES, CLOTHING, MONEY…
The way a country
produces, buys, and sells
it’s goods and services
varies around the world.
Type of
Economy
Definition
Synonym
Examples
1.Traditional
Economy
PEOPLE MEET THEIR NEEDS
BASED ON CUSTOM.


FAMILIES PASS ON THEIR
WORK TO THEIR CHILDREN.


PEOPLE LIVE A SIMPLER
LIFE.
Native Groups in Central and South America
Traditional Economy
Traditional Economy
Type of
Economy
Traditional
Definition
Synonym
Examples
People meet their
needs based on
custom.
None
Native
Groups in
Central and
South
America
Free Enterprise System
Synonyms: Capitalism or Market Economy
An economy where people make their own
decisions about money and own businesses with
little government interference.
The individual decides:
What to sell
How much to make
How much to charge
MORALITY AND ETHICS
It’s important for everyone in a free
enterprise not to cheat the system, lie
about profits, or overprice goods and
services.
Free Enterprise System
 U.S.A., Canada, Mexico, Haiti, Panama
1. Economic freedom“I can choose my job, what
I want to buy, and what I
want to sell.”
2. Voluntary exchange“I’ll sell you this, if you sell me
that. Now let’s make a deal.”
Free Enterprise System
 U.S.A., Canada, Mexico, Haiti, Panama
3. Private property“I own my home and
business.”
4. Profit motive“If I work hard, I can make
as much money as I want!”
Type of
Economy
Traditional
Definition
People meet their needs based on
custom.
Synonym
None
Free
A type of economy
Capitalism
Enterprise
where people make
System
their own decisions and Market
own their own
businesses.
Economy
Examples
Native Groups
in Central and
South America
USA
Canada
Mexico
Haiti
Panama
Communism
 Synonym: Command Economy
Government controls all industry and there is
little private property. People do not decide what
to sell or how much to charge for it.
Communism
Synonym: Command Economy
 Cuba
Communism
Synonym: Command Economy
North
Korea
Type of
Economy
Definition
Synonym
Traditional
People meet their needs based on
custom.
Free Enterprise
System
A type of economy where people make
their own decisions and own their own
businesses.
Communist
Government makes all the Command
decisions.
Economy
There is no private
property.
Examples
Native
Groups in
Central
America
Capitalism
USA
Canada
Mexico
Haiti
Panama
Cuba
North
Korea
Socialism
Synonym: Mixed Economy
PEOPLE MAKE
MOST
DECISIONS FOR
THEMSELVES,
BUT THE
GOVERNMENT
HAS SOME
CONTROL.
Socialism
Synonym: Mixed Economy
EX: MANY EUROPEAN COUNTRIES
 FREE COLLEGE
 FREE MEDICINE
 FREE DOCTOR’S VISITS
 FREE CHILDCARE
Socialism
Synonym: Mixed Economy
“I CAN OPEN MY OWN
BUSINESS AND THE
GOVERNMENT WILL NOT
INTERFERE.”
“I GET FREE HEALTHCARE
AND EDUCATION, BUT PAY
VERY HIGH TAXES.”
Type of
Economy
Traditional
Definition
Synonym
People meet their needs based on
custom.
Examples
Native Groups in
Central America
Free Enterprise
System
A type of economy where people make
their own decisions and own their own
businesses.
Capitalism
USA
Canada
Mexico
Haiti
Panama
Communist
Government makes all the decisions.
Command
Economy
Cuba
North Korea
There is no private property.
Socialism
Many, but not all,
businesses are owned
and controlled by the
government.
Mixed
Many
Economy European
Union
countries
Journaling
 Explain which
economic system you
believe is the best for
a country to practice.
Provide and explain
at least 3 reasons
supporting your
opinion.
Show what you know:
Read the description. Decide in
which type of economy it would
most likely be found.
Free Enterprise System
Communist Economy
Socialist Economy
Traditional Economy
Show what you know:
 People live off the land and sell their
crops in village markets for items they
need.
 Traditional Economy
Show what you know:
 Buyers and sellers make the
decisions.
 FREE ENTERPRISE SYSTEM
Show what you know:
 Supply and demand determines how
much an item costs.
 FREE ENTERPRISE SYSTEM
Show what you know:
 The food supply is rationed, or
divided, so everyone gets the same
amount.
 Communist Economy
Show what you know:
 Citizens receive a free college education,
but also have freedom to make their own
career and business decisions.
 Socialist Economy
Show what you know:
 Workers are free to work wherever
they choose.
 FREE ENTERPRISE SYSTEM
Show what you know:
 Families pass on skills, land, and
animals from generation to generation.
 Traditional Economy
Show what you know:
 Equal distribution of goods and
services for everyone.
 Communist Economy
Show what you know:
 Competition limits the abuse of
economic power.
 FREE ENTERPRISE SYSTEM
Show what you know:
 There is no unemployment.
 Communist Economy