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Economic System pg 176 text bk by Roy Xia (Mixed System (Example mining…
Economic System pg 176 text bk by Roy Xia
Market Capitalism
Pros: When many business compete for the same market, they tend to keep prices down to attract consumers.
Describe:
In a Market economy, producers and consumers make all the economic decisions. Producers decides what services and products to offer to the people, and the consumers have the right to decide what they want to buy. The government tries to not interfere in the businesses, and they provide only to the services to make sure that the economy can work well.
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Con
Because profit is the only thing that drives motive for business, meaning they would even harm the environment for their own selfish purposes, since they have the free will.
Mixed System
Pros
The government can make regulations to protect the environment, workers, and the consumers.
Cons
The government can make bad decisions. It could fail to encourage business or fail to prevent protection toward the people.
Describe
In a mixed economy, individuals and businesses are free to make many decisions, though the government makes some decisions to encourage or regulate businesses or to improve people's quality of life. The government sets all the rules or regulations the people must follow. The government tries to do its best to make the balance of protection of the people, and encouraging the business.
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Example mining
Tertiary description
A home improvement supplies retailing company home depot sells metal parts and stores sell cut jewels.
Secondary Description
After the metals and jewelry are cut, and polished. A company turns the minerals to parts
Quaternary Description
The industry that focuses on application of ideas and knowledge and has improved technology to be even faster
Primary Description
A mining company mines all the ore and transports it out of the ground.
Command Socialism
Con
The government handles almost everything and they try there best to keep every one equal.
Description
Command Governments are the ones, that controls almost or all the goods. The people that live there have little to no rights, and are forced to do to do as they are told. The Government have the free will to do anything they think is right, even if it means killing a mass amount of their own people for a reason many would not see as right nor necessary.
Cons
Since the government owns everything, they might not make the most fair, or smartest choices.
State Run Capitalism:
What is State Run Capitalism?
State-run Capitalism means that the government owns and operate large companies to generate profit and to make themselves very very wealthy. The best example is China
Advantage: Make economic improvement and growth very fast and very effective. China has improved the quality of life to over 300 million people in just 30 years
Disadvantage: Lack of rights for freedom of speech, lack of democracy.
