Please enable JavaScript.
Coggle requires JavaScript to display documents.
Economic Systems - Coggle Diagram
Economic Systems
Market System
Disadvantage: Often leads to extreme profit driven economy that often ignores social services and the environment. 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.
Advantage: Allows for competition between businesses which brings down prices and is good for consummers. 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 tax. With many different options, prices are often kept low.
Economic Decision making: The producers and consumers, I.e the free hand of the market. Producers decide what to make in order to create and profit and consumers decide what they want to buy.
-
Example Countries: Singapore, USA
Mixed System
Disadvantage: Government sometimes doesn't get the balance right Sometimes the rules the government makes end up back firing. Because of rent control, there is not enough rental housing in Ontario.
Economic Decision Making: Mainly consumers and producers with some government intervention Let's business and consumer decide.
Advantage: Can balance the interests of the citizens while protecting the environment and social services. Regulation that adds protections for workers.
-
Example Countries: Canada, Japan
Command System
Advantage: Can more easily funnel resources towards a united goal. Government can dedicate itself to a specific goal like building infrastructure to create jobs. Create greater level of economic equality.
.
-
Example Countries, North Korea, USA
-
Disadvantage: Decision aren’t often made to the interest of their own citizens. Government attempts to manipulate the systems to create equality, so the government in North decides to put more people to work farmers and to stop importing rice. Drought kills rice crop - people starve. The government tells you what you can or can't do with your money.Taxes are very high
