Types of economics

By natalia athie
  • 2000 BCE

    Traditional economics

    Traditional economics
    • Traditional economics began in the Stone ages.
    • An example of where traditional economy comes from is the Maasai tribe of East Africa.
    • Traditional economics is when economic questions are answered by customs.
    • It is based on trade and barter, mostly centered on farming.
    • Most decisions are made based on customs.
  • 401

    Feudal economy

    Feudal economy
    • This type of economy was mostly used in the Middle Ages.
    • This economy worked by a hierarchy, at the top was the monarch, then the nobility, afterwards were knights and the common people.
    • The land was the main source of income and power. The majority of the people worked the land in exchange for protection and certain rights,
    • The main difference in this economy was that all the economic power fell on the monarch and most decisions were maid to please the lords.
  • 1501

    Mercantilism

    Mercantilism
    • Adam Smith
    • It was based on the idea that a nation's wealth and power were build by a regulated trade. -Government control economy. -It's goal was to increase the supply of gold and silver with export's instead of imports. -It was centeres on the interests of merchants and producers.
    • Unlike some economies this one relies a lot on government intervention, and on the trade aspect of the economy than other elements. Economic freedom was also very limited.

  • Market economy

    Market economy
    • Market economy is an economic system where the people own most of the resources and not the state.
    • Competition.
    • Here individuals control the use and prices of resources.
    • This type of economy is answered by producers and consumers.
    • The author of this type of economy is Adam Smith, who explained free market with capitalist economies.
    • Unlike command economy, the government has very limited involvement and it is mostly based on voluntary exchange.

  • socialism economy

    socialism economy
    -Karl Marx
    - Unlike some economic systems where business owners control the means of production, socialism is based on shared ownership and control among the laboring class.
    -All legal production and distribution decisions are made by the government.
    - These systems tend to have robust welfare system and social safety nets so the rely on the state for everything that includes food to healthcare.
    -It includes production for use, rather than profit. No more competitive buying and selling.

  • Command Economy

    Command Economy
    • In 1917 Vladimir Lenin and the Russian revolution created the first Communist command economy.
    • In the 19th century Karl Marx (german economist) wrote the "communist manifesto.
    • A command economy is a type of system where the government makes all the economic decisions. Here the government or a collective owns the land and the means of production.
    • Unlike Traditional economy, here people aren't owners of anything, they can't respond on their own to free-market forces.

  • Mixed Economy

    Mixed Economy
    • Mixed economy is a system combined of both capitalism and socialism.
    • In this type of economy the government is involved in the decision making of resources and businesses in the private sector.
    • Trade protection, subsidies and taxes are examples of government intervention in mixed economy.
    • Unlike Market economy, mixed economy does involve the government a lot more and they have certain control over businesses in the private sector.
    • Command economy and Market economy.