There are four different kinds of Economic Systems
Command Economy is when the gov't has control over the production of goods and resources
An example of a command economy is Russia. The gov't of Russia is in control of the production of all goods. One advantage of this is that all people get an equal amount of goods.
However, people would not be provided with their wants in life
Market Economy is when more economic freedom is offered to individuals.
Laissez Faire=HANDS OFF!!
An example of a country that has a market economy is Hong Kong
An example of a time that this economy was being put to use is the Nomadic Native Americans.
One advantage of this economy is that everyone knows their contribution to the production. However, the weather changes which causes decrease the amount of work put in to this production.
An example of a mixed economy is the United States Constitution
Mixed Economy is basically what it is. Its a mix of the characteristics of a command, market and traditional economy.
One advantage is that more businesses are making money and there are limited choice. However, not everybody has a job and the gov't does not have that much money to provide jobs.
Traditional Economy is when the economy is based on agriculture, fishing, hunting, gathering, and growing crops and food.
An advantage of having this economy is being rewarding more efficient production with the highest profit. However, if the market has more freedom, then this could decrease the amount of competitive members in the society.