Traditional Economies
What should be produced? In this kind of economic system, what is produced is based on custom and the habit of how such decisions were made in the past.
How should it be produced? The methods of production are primitive. Bartering, or a system of trading in goods and services, replaces currency in a traditional economy.
For whom should it be produced? The primary group for whom goods and services are produced in a traditional economy is the tribe or family group.
Command Economies
What should be produced? In a command economy, the central government decides what goods and services will be produced, what wages will be paid to workers, what jobs the workers do, as well as the prices of goods.
How should it be produced? In a command economy, no one can start
their own business. The government determines how and where the goods
produced would be sold.
For whom should it be produced? In a command economy, the government determines how the goods and services are distributed.
Market Economies
What should be produced? In a market economy, the wants of these consumers and the profit motive of the producers will decide what will be produced.
How should it be produced? Labor (the workers) and management (the bosses/owners) together will determine how goods will be produced in a market economy.
For whom should it be produced? In a market economy, each production resource is paid based on what is contributed to the production of goods and services.
