- The government sets prices for goods and services.
- Individuals and businesses make decisions about what to produce and consume.
- Resources are allocated based on supply and demand in the market.
- The government owns most of the means of production.
- Prices are determined by competition among producers.
- Economic decisions are made by central planners.
- Consumers have a wide variety of choices.
- The government provides public goods and services.
- Private property is protected by law.
- Production is guided by profit motives.
- The government intervenes to correct market failures.
- Workers are free to choose their jobs and employers.
- Trade is regulated by the government to protect domestic industries.
- Innovation is driven by competition and consumer demand.
- The government controls the money supply and interest rates.
- Economic activity is primarily driven by private enterprise.
- The government may ration goods during shortages.
- Markets operate with minimal government interference.
- The government may impose price ceilings or floors.
- Economic growth is measured by GDP and other market indicators.
Parent Tip: Review the logic above to help your child master the concept of types of economies worksheet.
