Free Market
Philosopher
Basic Idea
Who owns the factors of
production and makes
decisions?
Economic Efficiency
Economic Freedom
Economic Security and
Predictability
Economic Equality
Economic Growth and
Innovation
Political System
Adam Smith
The Wealth of Nations
Command Economy
Karl Marx
The Communist Manifesto & Das
Kapital
Free Market
Command Economy
Philosopher
Adam Smith
The Wealth of Nations
Karl Marx
The Communist Manifesto & Das
Kapital
Basic Idea
Markets exist because no one is selfsufficient. People have to specialize
which creates a need for markets so
people can sell and buy what they want
and need.
The central government is in command of
the economy, making decisions about
what to produce, how to produce it, and
who gets to consume it.
Who owns the factors of
production and makes the
decisions?
Economic Efficiency
Economic Freedom
Economic Security and
Predictability
Economic Equality
Economic Growth and
Innovation
Political System
Free Market
Command Economy
Philosopher
Adam Smith
The Wealth of Nations
Karl Marx
The Communist Manifesto & Das
Kapital
Basic Idea
Markets exist because no one is selfsufficient. People have to specialize
which creates a need for markets so
people can sell and buy what they want
and need.
The central government is in command of
the economy, making decisions about
what to produce, how to produce it, and
who gets to consume it.
Who owns the factors of
production and makes
decisions?
Individuals
The Central Government
Economic Efficiency
Economic Freedom
Economic Security and
Predictability
Economic Equality
Economic Growth and
Innovation
Political System
Free Market
Command Economy
Philosopher
Adam Smith
The Wealth of Nations
Karl Marx
The Communist Manifesto & Das
Kapital
Basic Idea
Markets exist because no one is selfsufficient. People have to specialize
which creates a need for markets so
people can sell and buy what they want
and need.
The central government is in command of
the economy, making decisions about
what to produce, how to produce it, and
who gets to consume it.
Who owns the factors of
production and makes
decisions?
Individuals
The Central Government
Responds quickly to changing
conditions
Bureaucratic decision making takes time,
lacks flexibility.
Economic Efficiency
Economic Freedom
Economic Security and
Predictability
Economic Equality
Economic Growth and
Innovation
Political System
Free Market
Command Economy
Philosopher
Adam Smith
The Wealth of Nations
Karl Marx
The Communist Manifesto & Das
Kapital
Basic Idea
Markets exist because no one is selfsufficient. People have to specialize
which creates a need for markets so
people can sell and buy what they want
and need.
The central government is in command of
the economy, making decisions about
what to produce, how to produce it, and
who gets to consume it.
Who owns the factors of
production and makes
decisions?
Individuals
The Central Government
Responds quickly to changing
conditions, produces what is wanted.
Bureaucratic decision making takes time
and lacks flexibility.
Highest degree of any system
Government makes all decisions,
Consumers lack say in all decisions.
Economic Efficiency
Economic Freedom
Economic Security and
Predictability
Economic Equality
Economic Growth and
Innovation
Political System
Free Market
Command Economy
Philosopher
Adam Smith
The Wealth of Nations
Karl Marx
The Communist Manifesto & Das
Kapital
Basic Idea
Markets exist because no one is selfsufficient. People have to specialize
which creates a need for markets so
people can sell and buy what they want
and need.
The central government is in command of
the economy, making decisions about
what to produce, how to produce it, and
who gets to consume it.
Who owns the factors of
production and makes
decisions?
Individuals
The Central Government
Responds quickly to changing
conditions, produces what is wanted.
Bureaucratic decision making
Economic Freedom
Highest degree of any system
Government makes all decisions
Economic Security and
Predictability
No “safety net”
Government provides basic needs
Economic Efficiency
Economic Equality
Economic Growth and
Innovation
Political System
Free Market
Command Economy
Philosopher
Adam Smith
The Wealth of Nations
Karl Marx
The Communist Manifesto & Das
Kapital
Basic Idea
Markets exist because no one is selfsufficient. People have to specialize
which creates a need for markets so
people can sell and buy what they want
and need.
The central government is in command of
the economy, making decisions about
what to produce, how to produce it, and
who gets to consume it.
Who owns the factors of
production and makes
decisions?
Individuals
The Central Government
Economic Efficiency
Responds quickly to changing
conditions, produces what is wanted.
Bureaucratic decision making takes time,
lacks flexibility.
Economic Freedom
Highest degree of any system
Government makes all decisions,
Consumers lack say in all decisions
Economic Security and
Predictability
No “safety net”
Government provides basic needs
Self-interest
Distribute wealth evenly throughout
society.
Economic Equality
Economic Growth and
Innovation
Political System
Free Market
Command Economy
Philosopher
Adam Smith
The Wealth of Nations
Karl Marx
The Communist Manifesto & Das
Kapital
Basic Idea
Markets exist because no one is selfsufficient. People have to specialize
which creates a need for markets so
people can sell and buy what they want
and need.
The central government is in command of
the economy, making decisions about
what to produce, how to produce it, and
who gets to consume it.
Who owns the factors of
production and makes
decisions?
Individuals
The Central Government
Economic Efficiency
Responds quickly to changing
conditions, produces what is wanted.
Bureaucratic decision making takes time,
lacks flexibility.
Economic Freedom
Highest degree of any system
Government makes all decisions,
Consumers lack say in all decisions
Economic Security and
Predictability
No “safety net”
Government provides basic needs
Economic Equality
Self-interest
Distribute wealth evenly throughout
society.
Economic Growth and
Innovation
Encourages entrepreneurs to seek new
ideas and innovations.
Does not reward innovation and actively
discourages change.
Political System
Free Market
Command Economy
Philosopher
Adam Smith
The Wealth of Nations
Karl Marx
The Communist Manifesto & Das
Kapital
Basic Idea
Markets exist because no one is selfsufficient. People have to specialize
which creates a need for markets so
people can sell and buy what they want
and need.
The central government is in command of
the economy, making decisions about
what to produce, how to produce it, and
who gets to consume it.
Who owns the factors of
production and makes
decisions?
Individuals
The Central Government
Economic Efficiency
Responds quickly to changing
conditions, produces what is wanted.
Bureaucratic decision making takes time,
lacks flexibility.
Economic Freedom
Highest degree of any system
Government makes all decisions,
Consumers lack say in all decisions
Economic Security and
Predictability
No “safety net”
Government provides basic needs
Economic Equality
Self-interest
Distribute wealth evenly throughout
society.
Economic Growth and
Innovation
Encourages entrepreneurs to seek new
ideas and innovations.
Does not reward innovation and actively
discourages change.
Usually associated with a democracy
Usually associated with communism
Political System