Traditional Economy: bartering is used (trading without using money), hunting, fishing, gathering, , only in small villages , If my parents were peanut farmers, I am going to be a peanut farmer too, people follow tradition and do what their ancestors did, Market Economy: Based on the principal of supply and demand , Free enterprise , businesses and private individuals make all the economic decisions , the private sector is in charge of the economy, the prices of goods are determined by supply and demand , There is no government regulation at all , Command Economy: The government makes all the economic decisions, North Korea has close to this economy , The Soviet Union's economy was close to this economy , Central authority makes all the decisions , businesses have no say in the economy, communist governments are close to this type of economy, No private sector, Cuba's economy is close to this type economy, Mixed Economy: Both the public and the private sector make decisions , Both businesses and the government make economic decisions, democratic countries have this type of economy, All countries have this type of economy, Has characteristics of both command and market economies, Countries placed anywhere on the economic continuum between market and command economies., Mexico and Brazil have this type of economy, Canada,

Economic Systems

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