Economic Systems, page 176 in text, Aaron Wang
Command / Socialism
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Pros
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Mixed
Pros
Cons
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Market
Pros
Cons
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Government owns or controls all the resources, goods and services
Government can focus its resources on one goal
Government decisions are not always made in the best interests of the people
Individuals and businesses are free to make any decisions. But the government sets certain rules that individuals or businesses have to follow
Government can protect the environment, consumers and workers.
Government can sometimes strike the wrong balance, fail to encourage business or fail to protect the people
Since profit is the main point in the market, measures in protecting the environment and social services is scarce
Producers and consumers make all the economic decisions
When many industries compete on the same market, they tend to keep prices down for customers
State Run Capitalism
Pros
Cons
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the government owns and operates large companies to generate profit and to make themselves very very very wealthy
Make economic improvement and growth very fast and very effective. China has improved the quality of life to over 300 million in just 30 years
Lack of rights for freedom of speech, lack of democracy
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Economic Sectors
Economic Sectors
Quaternary Industry
Industry that focuses in the application of ideas and knowledge, such as software development or education
Tertiary Industry
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Industry that provides services or sells goods, such as accounting or retail stores
Secondary Industry
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Industry that uses natural resources to make consumer products, such as packaging for food
Primary Industry
Industry that harvests natural resources from nature, such as forestry