Command Economy
Free Market Economy
• An economy where people can
freely buy & trade goods &
services.
• The price of each good or
service is determined by
demand, not the government.
Capitalism
• An economy where people can
own their own business and
property.
• Competition between
businesses is encouraged.
• Less government control.
Economic
Models
• An economy that is controlled
by the government.
• The means of production
(factories, etc.) are publicly
owned.
• Lack of choices of where to
shop and sale goods.
Socialism
Communism
• An economy where people
are allowed to own property
& produce goods but the
government tells them:
• What they get to keep
• How much they must
give away
• What they can sell it for
• An economy & government
in which the major
productive resources in a
society—such as mines,
factories, and farms—are
owned by the government,
and wealth is divided
among citizens equally.