TRADITIONAL ECONOMIC SYSTEM: An economy that does things are there were done in the past., Customs and traditions determine the answers to the 3 economic quesions., It is produced the same way as your ancestors., It is found in rural areas., It is centered around family and tribe. , COMMAND ECONOMIC SYSTEM: It is a planned economy. , People living in these economies are NOT free., The government leader planners --> GROUP, Heavy industry= large scare production of basic items (example= steel), Example: former Soviet Union, SOCIALISM: It is the belief that government rather than individuals should own a country's major industries., Examples of major industries: communication systems, transportation systems, oil, utilities, health care, education, etc., Socialist countries= democracies (representatives), COMMUNISM: A government in which the government owns ALL property (form of socialism). , People work to the best of their abilities and use that they need., Communist countries often form dictatorships. ,

Ch.2|Lesson2 (Traditional and Command Economic Systems) NOTES

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