8.2 Economic Systems

What are three economic systems and three political-economic systems?

Economic system: an organized way for a country to decide how to use its productive resources

1. Market economy: an economic system in which individual buying decisions in the marketplace together determine what, how, and for whom goods and services will be produced

2. Command economy: an economic system in which a central planning authority, under control of the country's government, own most of the factors of production and determines what, how and for whom goods and services will be produced

3. Mixed economy: an economic system that uses aspects of a market and a command economy to make decisions about what, how, and for whom goods and services will be produced