is an economic system in which people produce and distribute goods according to customs handed down from generation to generation command economy is an economic system in which the government makes all economic decisions market economy is an economic system in which individual choice and voluntary exchange direct economic decisions centrally planned economy is a system in which central government officials make all economic decisions socialism is an economic system in which the government owns some or all of the factors of production communism is an economic system in which the government owns all the factors of production and there is little to no political freedom