Command Economy- an economy in which resources are owned and controlled by the government.
On Evan's way to work, he stopped at the gas station to fill up his car. In the country he lives in, the government owns the oil industry. This means that the government sets the prices on the gas.
$1.98 a gallon .... not bad
Market Economy- an economy in which the resources are owned and controlled my the people of that country.
This is where Evan works, he sells magazines, postcards, and newspapers to people. He buys all of these magazines, newspapers, and postcards with his own money and re-sells them to the public.
Mixed Economy- an economy that combines elements of the command and market economies.
After work, Evan went to the store to pick up some things he needed for back at home. At this store, the government decides what to have stocked and the prices of the items, but after Evan bought his needed items, he was in full control and had total ownership over his items.
Traditional Economy- when products are produced how they have always been produced. Used in countries that are less developed.
Time to catch dinner.
Later that night, Evan took his son to go fishing. They were planning on catching some fish to eat that night.
Evan has the freedom of choice to go to the pier. Freedom of Choice is very beneficial to everyone because they can basically do want the want to do, for they are not under constraint by anybody.
Freedom of Choice- an individual's opportunity and autonomy to perform an action selected from at least two available options, unconstrained by external parties.
Profit- a financial gain, especially the difference between the amount earned and the amount spent in buying, operating, or producing something.
At Evan's job, he makes a profit off of what he sells. Profit is very beneficial to people because it's the money they make for them and their families to keep their homes supplied with needs.