Economic Systems Essay
AP Macroeconomics – 1B
Mr. W. English
2 September 2013
Traditional Economy VS Command Economy
In economics we study how individuals and society seek to satisfy needs and wants through incentives, choices, and allocation of scarce resources. We know that we cannot have everything, we have to make choices. We then asked ourselves, “How will society choose between what they do and don’t have?” that’s why economic systems were created. They were created specifically to answer the three economic questions. What should we produce? How should we produce it? And Who should get it? There’s different ways we can answer these questions, it all depends on the economies goals and values.
The first type of economy I …show more content…
All the four different types of economic systems answer to the three economic questions. What should we produce? How should we produce it? And who should get it? Each one is different because each country chooses a different kind of economic system because they have different goals and different things that they value. In a command economy for example, what the people value