Why would people stand in line all day for one roll of toilet paper? . Moscow 1988. Command. Traditional. Market. Economic SYSTEM $. Every society has an economic system in which people make and distribute goods and services. . What is AN ECONOMIC SYSTEM?.
Why would people stand in line all day for one roll of toilet paper?
MarketEconomic SYSTEM $
Every society has an economic system in which people make and distribute goods and services.
In any type of economic systems 3 basic questions must be answered.
In a command economy the factors of production is owned and controlled by the government.
What?The government decides what products are needed.
How?Since the government owns all means of production, it decides how goods and services will be produced.
For whom? The government decides who will get what is produced.
In a market economic system the factors of production is controlled by individuals or corporations.
What? Consumers and producers decide what should be produced.
How? Consumersand producers decide how to produce.
For whom? Consumers.
All economies in the world have aspects of both command and market.
All modern economies in the world are MIXED economies.
But the mix is different in every nation.
In which country do you think it would be the easiest to start a business?
The economies of Germany, Russia, and the United Kingdom have aspects of both command and the market economic systems. Explain.
This picture BEST represents a _______ economic system.