Economic Systems

Throughout this topic, you learned that a nation often organizes its economy using one of the following systems: traditional, free market, command, or mixed economy. Traditional economies are based on customs and historical precedent. Free market economies allow individuals to make most decisions on the production and consumption of goods and services. Command economies are centrally controlled by a powerful government. Mixed economies blend aspects of free market, traditional, and command economies.

You also learned about the potential benefits and consequences of free trade throughout the world. The North Atlantic Free Trade Agreement created a free trade zone within Canada, the United States and Mexico, promoting greater free trade throughout the region.