Hello Hank, I'm here to show you economies of the world.
Minimal government interference, more individual responsibilities.
One Cheeseburger please!
Hank is perplexed when he wakes up from his slumber to see a mythical creature talking to him about the different economies of the world.
The creature first takes him to a fast food place in the United States and explains that the United States is considered a market economy-- an economy where the people have control over the resources--but could also be a mixed economy since it does have a little government interference.
When Hank sees that people have the ability to make choices and accept the consequences, the creature explains to him that it is called Freedom of Choice and is important because it allows consumers to choose between competitors which causes profit--the financial gain, usually the diff. between amount earned and amount spent.
The creature then explains that competition is the rivalry between businesses to sell a product and that it is important because it helps to lower prices for the consumer. It explains that places like North Korea don't have things like Freedom of Choice and that the government controls most resources--which is a command economy.
Then, suddenly, the world changed and we ended up in some jungle called Dreamland. The creature explained that it was his home and him and his family produce goods are produced the way they always have been, which is called a traditional economy.
The creature showed Hank his house, but said that he didn't own any private property because it was against the law. Private property is the legal designation for ownership of property by a non-governmental entity. It is important because it allows for people to own things that they need or want, which supports the economy.