What?: The method in which a society divides its wealth or how it distributes its goods (products) and resources (raw materials)
Where?: Everywhere
When?: Always
Who?: Everyone
How?: (Examples)
1)Market Economy: Decisions of what to produce and how to produce it are made by buyers and sellers.
2)Command Economy: Decisions of what to produce and how to produce it are made by the government.
3)Mixed Economy: A combination of Command and Market
4)Traditional Economy: Based upon agriculture and long-established methods
Why?: In order to survive a society must have an effective method of distributing its wealth.
Importance: As we move forward in Global History the types of economic systems used in nations as they develop will become a major source of fighting between peoples and nations.
Related Terms:1) Resources, 2) Raw Materials 3) Goods, 3) Means of Production