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Types of Economy
7th Grade Social Studies Types of Econ
| Term | Definition |
|---|---|
| Command Economy | Gov makes all the economic decisions (production, price, etc) |
| Market Economy | Producers and consumers make the decisions Decisions are based on supply and demand |
| Traditional Economy | Economy based on historical practice |
| Mixed Economy | Some decisions are made by the Gov, while other decisions are made by producers and consumers |
| Human Capital | Value of the skills a person possesses -- the more skills, the higher rank you are |
| Voluntary Trade | Trade between buyers and sellers with restriction (EX: Flea Markets) Based on decisions |
| Industrialization | Development of manufacturing in a country These Econ. s are usually much stronger |
| International Trade | Trade between countries Countries trade specific items like natural resources |