Economic systems

The study of economic systems includes traditional, market, command, and mixed economies.
All of these systems attempt to answer the same questions.
- What should be produced?
- How much?
- How should goods be produced? And, for whom?

Tradition economies rely on farming and very simple barter trading. Examples include Neolithic farming villages and the first river civilizations.
A market economy is controlled by the forces of supply and demand. Market economies, such as those run by the Western European democracies have allowed these countries to grow large and strong.
A command economy is run by a strong centralized government and tends to focus on industrial goods. The Soviet Union and Communist China in the 20th century operated under this economic system. While short term gains did occur, the majority of people suffered under system that paid little attention to food production or consumer goods.
A mixed economy is a combination of market and command. The United States and many nations in the European Union operated under this system today.