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Economic Systems page 176 by Oscar Liu (Mixed System (Economic Sectors…
Economic Systems page 176 by Oscar Liu
Market System
When many businesses compete for the same market, they tend to keep prices down to attract consumers
Because profit is the single driving motive for business, their generally avoid taking measures to protect the environment or increase social services
In a market economy, producers and consumers make all the economic decisions. Producers decide what goods and services to offer,
Mixed System
The government can make regulations to protect the environment, workers, and the consumer.
The Government sometimes strikes the wrong balance. It may wither fail to encourage business or fail to protect the people.
In a mixed economy, individuals and businesses are free to make many decisions. However, the government makes some decisions to encourage or regulate businesses or to improve people's quality of life.
Economic Sectors
Secondary industry
Secondary industries take the wood from the deforestation and makes consumer product such as appliances and furniture.This makes pulp.
Primary industry
Deforestation, they take the resources from the ground and they use it to make different materials that are consumed or utilized by humans
tertiary industry
Tertiary industries sell the wood to companies for making houses and companies that sell wood products for multi purpose use
Quaternary industry
Efficiently uses the wood to make a Notebook that you can draw and erase instantly with a button and can also export and sent directly to your computer. The notebook efficient and effectively uses thin paper to save wood.
Command System
The government can focus all of its resources on one goal, such as China's pus to increase economic development
Government decisions are not always made in the best interest of the citizens. For example, during the 1990s, government mismanagement led to famine in North Korea. About 1 million people died of starvation because the government would not accept food aid from other countries
In a command economy, the government owns or controls all the resources, goods,and services, and makes all the economic decisions. Citizens have little freedom to contribute to decisions that affect their country.
State Run Capitalism.
What is State Run Capitalism? State rim Capitalism means that the government owns and operates large companies generate profit and to make themselves very very very wealthy best example is China.
Pros: Make economic improvement and growth vert fast and very effective. China has improved the quality of like for over 300 million people in just 30 years.
Disadvantage: Lack of rights for freedom of speech, lack of democracy.
