Economics
Comparison of
Economic Systems
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 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.
Individuals
The Central Government
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
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.
Individuals
The Central Government
Responds quickly to changing
conditions, produces what is wanted.
Bureaucratic decision making takes
time, lacks flexibility.
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
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.
Individuals
The Central Government
Responds quickly to changing
conditions, produces what is wanted.
Bureaucratic decision making takes
time, lacks flexibility.
Highest degree of any system
Government makes all decisions,
Consumers lack say in all decisions
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
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.
Individuals
The Central Government
Responds quickly to changing
conditions, produces what is wanted.
Bureaucratic decision making takes
time, lacks flexibility.
Highest degree of any system
Government makes all decisions,
Consumers lack say in all decisions
No “safety net”
Government provides basic needs
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
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.
Individuals
The Central Government
Responds quickly to changing
conditions, produces what is wanted.
Bureaucratic decision making takes
time, lacks flexibility.
Highest degree of any system
Government makes all decisions,
Consumers lack say in all decisions
No “safety net”
Government provides basic needs
Self-interest
Distribute wealth evenly throughout
society.
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
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.
Individuals
The Central Government
Responds quickly to changing
conditions, produces what is wanted.
Bureaucratic decision making takes
time, lacks flexibility.
Highest degree of any system
Government makes all decisions,
Consumers lack say in all decisions
No “safety net”
Government provides basic needs
Self-interest
Distribute wealth evenly throughout
society.
Encourages entrepreneurs to seek new
ideas and innovations.
Does not reward innovation and
actively discourages change.
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
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.
Individuals
The Central Government
Responds quickly to changing
conditions, produces what is wanted.
Bureaucratic decision making takes
time, lacks flexibility.
Highest degree of any system
Government makes all decisions,
Consumers lack say in all decisions
No “safety net”
Government provides basic needs
Self-interest
Distribute wealth evenly throughout
society.
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
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
Homework