ECONOMYGroup 1:- Phạm Thị Linh- Phạm Hồng Dương- Trần Thị Lan- Trần Thanh Phương- Đặng Thùy Trang- Vũ Thị Thanh Xuân- Nguyễn Thị Mai

4 types of economy• 1.TRADITIONAL ECONOMY • 2. FREE MARKET• 3. PLANNED ECONOMY• 4. MIXED ECONOMY

TRADITIONAL ECONOMY

1. DEFINITION. A traditional

economy is an original economic system in which traditions, customs, and beliefs shape the goods and the services the economy produces, as well as the rules and manner of their distribution

1.2. Example of traditional economies1.Autralian aborigines

1.3. Characteristics1.Traditional economies are often based on one or a few of agriculture, hunting, fishing, and gathering.2.Barter and trade is often used in place of money.3.Often, people in a traditional economy live in families or tribes.

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• 4. morden technology is not used in traditional economies.

• 5. custom govern economies decisions that are made

• 6. physical streng and knowledge of the environment are the tools for survival.

1.4. Disadvantages and advantages

Advantages

1.these are peaceful societies.( war is almost unknown is these societies).2. By the nature of her family, the community living in togetherness.

Disadvantages

1. nothing in these societies ever changes because there is no technology, people depend on nature to survive2. people have no protection from environment disasters like droughts and floods.3. people are always in danger of hunger and disease.

2. Free market Free market

2.1_Denifition Free market is market economy that is not controlled in any way by a government2.2_ Free market particular + free from fluence of custom an tradition ( different from traditional market) +things are bought and sold because supply and demand ( traditional market is decisioned by custom and tradition) + free market control by itself ( traditional market : by government)

2.3 Positive feature + competition => control prices and quality of produce => good for customer +technology => helps company produce more goods in less time and less effort, save time, reduce cost production => more profit2.4 Negative feature + not exits anywhere in the world because of all governments set limits in order to control the economy.

PLANNED ECONOMY

3.1:DEFINITION:Planned economy is controlled by government. The government decides:what is produced, how much is produced, the methods of the production and the price.

3.2:CHARACTERISTICS

Market economy1. Having problems

2. Producers always want the highest price

3. Salary mostly depends on the demand for work

4. big industries grows slowly

Planned economy1. giving solutions to solve

problems2. The government sets price3. Salary depends on the

services provide to society4. Big industries grow quickly

3.3:DRAWBACKS

Problems with supply. It is difficult for government to know exactly how much to produce to meet demand.So the result is shortages

Definition

• A mixed economy is variously defined as an economic system consisting of a mixture of either markets and economic planning, public ownership and private ownership, or free markets and economic interventionism.

A mixed economy = A market economy + A planned economy

4.1Example of mixed economies

others

4.2Characteristics

Economies mix government control and free market values in different wayslet privately owned businesses exist alongside

state run industries.put limits on free enterprise.

let privately owned businesses exist alongside state run industries

The economy becomes divided between the state sector and the

private sector.

the state sector • industries that the government thinks are important and need

protection from the risks of the free market. use money that the government collects in taxes

do not need to compete with other companies

However, Deregulation reorganization of the economic

structure within which private businesses are allowed to compete

with state-run industries.

put limits on free enterprise

governments may decide to

create laws to make sure companies trade honestly

or to prevent monopolies

regulate methods of production

to guarantee that products are safe for consumers

and to protect the environment.

Many economists would argue that the mixed economy is the best system for consumers.

Because consumers have two ways to control the economy by

choosing to buy a company's goods or services

choosing to give political parties their votes.