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Economic Systems - Coggle Diagram
Economic Systems
Market/Capitalisms
Disadventages
Because profit is the single driving motive of businesses, they generally avoid taking measures to protect the environment or increase social services.
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Advantages
When business compete for the same market they tend to keep their prices down to attract more consumers.
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Mixed
Disadvantages
The government sometimes strikes the wrong balance. It may either fail to encourage business or fail to protect the people.
Who makes the decisions
Individuals and businesses are free to make many decisions in a mixed economy. However, the government makes some decisions to encourage or regulate businesses or to improve people's quality of life.
Advantages
The government can make regulations to protect the environment, workers, and the consumer.
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Command/Socialism
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Advantages
The government can focus all of its resources on one goal, such as China's push to increase economic development.
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