Principles of Macroeconomics / Unit 1 MAC 0014 short lesson, about 20 seconds
Three Ways to Organize an Economy
Captions available
The idea
Economies are organized three ways: traditional, where occupations pass down through families; command, where a government decides what is produced and at what price; and market, where decisions are decentralized.
In practice
Ancient Egypt and the medieval manor are the standard command examples.
Where people slip
No real economy is pure, and every market economy still needs rules that protect property and enforce contracts.
Your place on the trail
Every lesson rests on earlier ones and opens later ones. Tap any to jump.
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