Does anyone think that they can give me an example of this type of economy.
Another type of economy is a market economy, which is quite the opposite of a command economy.
Can anyone tell me a scenario that would be an example of a market economy?
As I rushed into school, I felt a sudden wave of excitement come over me, because I remembered that today we were going to learn about the different types of economies.
I think I know!
Mrs. Smith explained that a command economy is an economy where the government owns and control's the resources. My classmates and I were easily able to think of North Korea as an example because from history class and watching the news, we had learned that North Korea's government has a lot of control in their country.
Traditional economies produce things the way they have always been produced.
Mrs. Smith further explained that a market economy is different from a command economy because a market economy is an economy where resources are owned and controlled by the people who live there.
Wow! There are a lot of countries with mixed economies.
At first, my classmates and I struggled when thinking of an example. However, Sarah answered by saying that an example would be an environment where people make, buy, and sell in the market place in order to answer the three economic questions and make their own economic choices. A place where they practice this is the United Kingdom.
We then learned about traditional economy, which is a type of economy in which goods and services are produced the way they always have been. These economies operate according to the country's customs and focus on meeting basic needs. When we asked for an example, Mrs. Smith informed us that this type of economy is present in most underdeveloped countries.
This type of economy exists in many underdeveloped countries.
After describing that a mixed economy is an economy that combines aspects of command and market economy, Mrs. Smith told us to think of an example for homework, which I discussed with my classmates on the ride home. At first, we were completely puzzled, but as we thought about it more, we realized that most countries follow this economy. In fact, the United States can even be considered a mixed economy.