Market economy

1-3 Economic Systems Goals: Identify the three economic questions Differentiate among the main types of economic systems Describe the economic system of the U.S. Key Terms (Countries) Economic system ? a nation?s plan for answering the three economic questions Command economy ? the resources are owned and controlled by the government Market economy ? the resources are owned and controlled by the people of the country Traditional economy ? goods and services are produced the way it always has been done (African countries) Mixed economy ? combines elements of the command and market economics Capitalism - refers to the Three economic questions: What to produce? How to produce? What needs and wants to satisfy? The U.S. Economic System Four principles: Private Property