ECON 1 Lecture Notes - Lecture 5: Planned Economy, Mixed Economy

• School: UC-Irvine
• Department: Economics
• Course: ECON 1
• Professor: Amanda Brindley

Document Summary

4 different economic systems have developed to address the 3 key eq. Each sys. reflects a different prioritization of economic goals + reflect the values of societies in which these systems are present: traditional economies. A traditional economy relies on habit, custom, or ritual to decide what to produce, how to produce it, and to whom to distribute it. Little room for innovation or change + economic sys. revolves around the family. Work is divided among gender lines/roles => boys take occupations of father & girls with their mother these societies often work to support entire groups & the community. Agricultural and hunting practices the heart of people"s lives, laws, and beliefs. In a market economy, economic decisions are made by individuals and are based on trade. Choices made by an individual determine what is to be produced + who consumes the goods & services provided.