Please enable JavaScript.
Coggle requires JavaScript to display documents.
Economic systems, Market/Capitalism, Command/Socialisms, Mixed, image,…
Economic systems
Advantages :
When many businesses compete for the same market, they tend to keep prices down to attract consumers and allows for competition between businesses which brings down prices and is good for consumers. More freedom to decide what you would like to do with your money. Because the government makes less rules about money so companies and business pay less taxes.
Disadvantages
Because profit is the single driving motive of businesses they generally avoid taking measures to protect the environment or increase social services. If money is the only motivation, issues -greed, environmental damage, less social services (Health Care). Less protection for workers. (minimum Wage)
Tends to create more economic inequality.
Decisions
Producers decide what to make in order to create and profit and consumers decide what they want to buy.
-
Advantages
The government can focus all of its resources on one goal, such as China's push to increase economic development. Government can dedicate to a specific goal like building infrastructure to create jobs.
Creates greater level of economic equality
Disadvantages
Government decisions are not always made in the best interests of the citizens. For example, during the 1990s, government mismanagement led to famine in North Korea. About 1 million people died of starvation because the government would not accept food aid from other countries.
Government attempts to manipulate the system to create equality,
So the government in North Korea decides to put more people to work as farmers and to stop importing rice. Drought kills rice crop, so people starve.
-
-
-
-
Disadvantages
The government sometimes strikes the wrong balance. It may either fail to encourage business or fail to protect the people. Sometimes the rules the government makes end up back firing.
Because of rent control there Is not enough rent housing in Ontario.
Advantages
The government can make regulations to protect the environment workers and the consumer. Regulations that ass protections for the environment and for workers and for consumers.
Decisions
Let's businesses and consumer decide how to use money, but they must follow government rules.
-
-
-
-
-
-
-
-
