Unit 2, Activity 6, Four Basic Economic Questions
Four Basic Economic Questions
Command System
Government controls the
factors of production and
use.
Producers are directed to
make and deliver goods
and services.
Traditional System
Economic decisions are
based on customs,
beliefs, and norms.
Resources are allocated
by inheritance –
subsistence farming.
Individuals own the
factors of production and
make their own economic
decisions.
Supply and demand –
consumers and businesses
decide on what to produce
and purchase.
Market System
Command
1. What to produce?
2. How to produce it?
3. How much to produce?
4. Who gets what is produced?
Market
Traditional
Unit 2, Activity 6, Economic Systems
Economic Systems
Term
Traditional
Economic System
Command
Economic System
Market Economic
System
Definition
Application
Which exists in the
United States and
Louisiana?
Unit 2, Activity 6, Economic Systems
Advantages/Disadvantages of Each Economic System
Advantages
Command System
Traditional System
Market System
Disadvantages