Please enable JavaScript.
Coggle requires JavaScript to display documents.
Economic Systems page 176-177 (Command (Disadvantage government decisions…
Economic Systems page 176-177
Command
Disadvantage government decisions are not made in the best interests of the citizen.
Description: in the command economy the government owns or controls all in the country. The government makes all the economic decisions.
advantage the government can focus all of of its resources in its goals
The founding father of the command system was Karl Marx. He believed that any person should have the right to own their labor and no one should be able to own private property and that the government (the state) should own all sources of income and profit
Mixed System
advantage the government can make laws to protect they workers and consumer
Disadvantage: some times the government strikes
In a mixed economy people are free to make decisions $$$$$ but government makes some regulation to protecting quality of life
Market System
advantage Compete lowers the price
Disadvantage more about money and less about social services.
Description in this system you can accumulate unlimited personal wealth. All sessions are made by supply and demand and the government tries not to get involved in the economy. Singapore is the best example of a market economy in the world.
The founding father Market system was Adam Smith. Adam believes in the power of the market!!! in a market system money is the most in motivator!!! supply and demand drive all decisions. "All people are financially self-interested.
Traditional Economy
Advantage: people develop knowledge and skills for their environment.
Disadvantage: People have a low quality of life. They have little health care, poor nutrition, and struggle to read and write
Description: Most people are hunters, farmers and fishermen
