What to produce?
People don’t have to make decisions or take economic risks. Less competition/conflict. One opinion instead of many.
Government controls the economy
Things are done how they have always been done
Government controls production, distribution, and consumption
How to Produce?
For who to produce?
Supply and demand determine price
Government determine how much should be produced
No freedom or say in decisions. No creative opportunities for people.
Market place is freely choosen
People do not own their businesses
Government is not in control
People have very little voice in the economy
Mostly found in poor countries
Based on culture and tradition
buyers and sellers determine goods
What generations have always done before.
economic questions are based on tradition
Unorganized, may not have what you need, or it may feel unequal. What if no one has the item you are looking for? There is no “extra.”
People own the business
Competition can be a challenge for a company. Can lead to companies going out of business. Easier to be scammed/tricked.
Farming, hunting, gathering herding
Encourages entrepreneurship. Competition improves the quality of products, and keeps prices low.
