Types of Economies

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Types of Economies

There are four types of economies:
  • Cooperation
  • Custom
  • Command
  • Competition

Characteristics of Cooperation:
  1. Decide cooperatively what work needs to be done
  2. Decide cooperatively how the work was done
  3. Decide cooperatively who got what share of the produce

Characteristics of Custom
  1. Tradition dictaded who did what work
  2. Tradition dictaded who got what share of the produce
  3. Lack of freedom to choose
  4. Society do not grown

Characteristics of Command
  1. A dictador or leader has the power
  2. The person in power determines who does what
  3. The person in power determines who got what share of the produce
  4. No freedom to choice
  5. No/low unemployment
  6. No business cycles
  7. Inefficient

Characteristics of Competition
  1. The powers of supply and demand determine who gets what and who does what (Laisses faire(Let it be))
  2. Business cycle
  3. Unemployment

Dr. Stephanie Powers, “Types of economies”(Lecture,Donald School of Business, Red Deer AB,Winter 2012)