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2
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3
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- A free market economy is an
economy where the market is free to operate based on peoples wants and
needs.
- In a free market, the economy is driven by a government that practices a
laissez-faire, rather than controlling its economic policy.
- The forces that rule the marketplace are: Supply, Demand, and Competition.
- The U.S. has a free-market economy.
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- Supply and Demand decides what
items will be produced, who will be making the items and what the prices
for the items will be.
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- In a Command Economy, the government controls all means of production.
- Examples of the Command Economy were the Stalin’s 5 Year Plans and Mao’s
“The Great Leap Forward”
- The government decides what items will be made and at what price.
- The Soviet Union had a Command Economy.
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8
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9
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10
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11
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12
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13
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14
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Notes
