this is Bob and he is going to help us understand the four types of economy and principles of capitalism on his world wide vacation.
Hi my name is bob and i'm going to travel the world and teach you about the different economy at the same time.
Bob has arrived at his first stop in North Korea and is talking to one of the locals about the Command economy.
Hi im john and i live in North Korea it's a command economy that means the government controls and regulates all the resources
Freedom of choice is the ability to choose who or what you want done or in this case what you want to eat. This is good because it creates competition in our economy
I will have a bag of peanuts please
Principle one of capitalism: freedom of choice
sir would you like a bag of peanuts or pretzels
Now I'm in a supermarket in the in the United Kingdom and I'm going to talk about a market economy which the UK is and the second principle of business which is profit. So first Of all market economy is when supply and demand determine the price of goods and services . This ties into prof It because profit is the money you make when you sell a good or service for more then you can do too produce it this I see beneficial be Cause it helps businesses stay in business
Im here in Africa to talk to you about a traditional economy with my friend Sara
Thanks bob here in Africa me and my family have been making baskets for three generations because there is little to no currency here so we use trade and barter for food and other goods.
our final stop which is back home because to explain and experience a mixed economy is to live in the United States. A mixed economy is an economy that involves private and open ownership of resources and businesses