types of economics systems (Mixed economies ( Countries with a mixed…
types of economics systems
Traditions, Customs, and beliefs determine the goods and services the marketplace demands in a traditional economy.
Advantages: People understand their roles in the economy because it is tradition. This makes less competition between citizens and more fluent production.
Disadvantages: Becuase these economies rely on hunting, fishing, gathering, and the land in the form of farming, when the weather changes, the economy becomes jeopardized.
Greenland, because hunting and gathering and raising rain deer are all very essential parts of their economy.
An economy where trade is controlled by the central government
Advantages: Literally none. The only advantages are short term government benefits, which cannot last with the lack of money
Disadvantages: No incentive to work, no food, and money is only held by the government. The system also restricts the freedom of the people, and their financial freedom.
real World Example: China, Vietnam, North Korea, and Cuba are examples of command economies
Countries with a mixed economy include Iceland, Sweden, France, the United Kingdom, the United States, Russia and China. These countries have a mix of government spending and free-market systems based on the share of government spending as a percentage of gross domestic product.
A mix of the other three types of basic economic systems
Disadvantages- The systems is usually skewed in a certain way, which creates problems. can lead to socialism
Advantages: It has some aspects of socialism but there is a free market and people can work to be paid.
Disadvantages: Disparity in wealth and mobility exists in market economies because wealth tends to generate wealth. In other words, it's easier for wealthy individuals to become wealthier than it is for the poor to become wealthy.
Advantages: Competition leads to efficiency because businesses that have fewer costs are more competitive and make more money. Innovation is encouraged because it provides a competitive edge and increases the chance for wealth
Singapore: It has strong property rights and fighting against corruption. It keeps costs low as well as low taxes for the companies residing inside its borders. The country encourages open trade and also ranks highly in terms of offering investment and financial freedom. This shows that Singapore is a capitalist nation which is a huge part of market economy.
America is a real life example of a free market economy. The market is open with little or no limits from the government.