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Economic Systems (Capitalism (Advantage: Individuals choose what to…
Economic Systems
Capitalism
Advantage: Individuals choose what to consume, and this choice leads to more competition and better products and services.
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Real-World Examples: Canada; They have an economy dominated by private ownership of capital and a market-based system.
Disadvantage: There is an unequal distribution of wealth and income and there are high unemployment rates.
Communism
a political theory derived from Karl Marx, advocating class war and leading to a society in which all property is publicly owned and each person works and is paid according to their abilities and needs.
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Mixed
Disadvantage: Mixed economy tends to lean towards government control and has less individual freedom.
Real-World Examples: United States; The United States has a mixed economy. It works according to an economic system that has characteristics of both capitalism and socialism.
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Advantages: Allows private participation in production, which in return promotes healthy competition that can result in profit.
Traditional
It is an economic system in which traditions, beliefs, and customs help to shape the good and services of the economy. This system is based mostly off of trading and bartering, as it is usually in countries that are very rural and agriculture based. Almost no changes have been made to a pure traditional economy. The system is often seen as primitive or undeveloped as it uses technology that is seen as outdated.
Disadvantages: There are high levels of competition, they can be devastated by natural disasters, people can starve if a harvest or a hunt is poor, and they are very vulnerable to other economy types.
Advantages: The Traditional Economic System produces no industrial pollution, keep their living environment clean, only produce and take what they need, and reduce waste by making and taking only what they need.
Real World Examples: Haiti. I think Haiti has a traditional economic system because it is a very rural part of the world and is very agriculture based, and it's a third world country.
North Korea
North korea is one of the only countries left with a pure and strong communist government,
it can quickly mobilize economic resources on a large scale, execute massive projects, and create industrial power.
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