Economies around the world
There are three major types of economies: traditional, market, and command. An economy is the manner in which a country distributes and produces good and services.
TRADITIONAL ECONOMY |
A traditional economy is based on agriculture, fishing, hunting, gathering or some combination of the above. It is guided by traditions and citizens may barter instead of using money. The Advantages of a Traditional Economy In an traditional economy they rely on their customs and tradition. They all know their role in the production. They are usually less destructive to the environment, so they are sustainable. Traditional Economy Disadvantages They are vulnerable to changes to the weather. They do not let their population grow very much. When the harvest or their hunting is poor people starve and their population shrinks. Examples and Characteristics for Traditional Economy Traditional economies can be found in places like Africa, Asia, and some places in South America. In Canada there are some places that use traditional economy. In a traditional economy everyone has a certain job to do. They will do the same job that their parents and grandparents did. The community will have to work together to survive. |
Command Economy
Facts
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Market Economy
A market economy is when individuals control the economic decisions. Businesses are made to create a profit and competition is used among businesses to decide prices of their goods. The government has little control of the businesses or economy. Supply and demand helps them make a good profit. They use a market economy In the United States and many more countries.
In a market economy consumers and businesses decide what they want to produce and purchase in their marketplace. They decide how much they want to sell their products for and decide on their quota. A quota is the amount of a certain item that can be created or sold.
In a market economy consumers and businesses decide what they want to produce and purchase in their marketplace. They decide how much they want to sell their products for and decide on their quota. A quota is the amount of a certain item that can be created or sold.
Mixed Economy
A mixed economy is where people can open their own businesses and compete, but the government can still make some regulations about what they can do. A mixed economy seeks to have many of the advantages of a market, command, and traditional economy with a few of the disadvantages. A mixed economy can still have a few things the government changes about your business; they have some power.
You may think of a mixed economy as being only one type of economy, but is traditional, command, and market all in one. It has all the advantages and disadvantages that all the other economies have.
You may think of a mixed economy as being only one type of economy, but is traditional, command, and market all in one. It has all the advantages and disadvantages that all the other economies have.
Economic Indicators
Economic Indicators
Economic indicators such as GDP, GDP per capita, literacy, and life expectancy help determine a country's economic development.
GDP (Gross Domestic Product): The value of all goods a country produces in one year.
GDP per capita: The value of all goods a country produces for a year per person.
Literacy: The ability to read and write.
Life Expectancy: A number of years a person is expected to live.
The United States' GDP is 16,800,000,000,000. Using this indicator we can tell that the United States is a developed country. (2013)
Australia's GDP per capita is 67,468. This tells us that Australia is a developed country.(2013)
Chad's literacy rate is 37. This indicates, that more than likely, Chad is a developing country. They probably don't have a good education system. (2012)
Botswana's life expectancy is 47. This tells us that Botswana is a developing country. They probably don't have the best medical care. (2013)
Economic indicators such as GDP, GDP per capita, literacy, and life expectancy help determine a country's economic development.
GDP (Gross Domestic Product): The value of all goods a country produces in one year.
GDP per capita: The value of all goods a country produces for a year per person.
Literacy: The ability to read and write.
Life Expectancy: A number of years a person is expected to live.
The United States' GDP is 16,800,000,000,000. Using this indicator we can tell that the United States is a developed country. (2013)
Australia's GDP per capita is 67,468. This tells us that Australia is a developed country.(2013)
Chad's literacy rate is 37. This indicates, that more than likely, Chad is a developing country. They probably don't have a good education system. (2012)
Botswana's life expectancy is 47. This tells us that Botswana is a developing country. They probably don't have the best medical care. (2013)