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Economic Systems - Coggle Diagram
Economic Systems
Market/Captialism
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Disadvantage
If money is the only motivation, issues - greed, environmental damage, less social services (health care), less protection for workers. Tends to create more economic inequality.
Advantage
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 tax.
Decisons
Producers decide what to make in order to create and profit and consumers decide what they want to buy.
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Mixed
Disadvantage
Sometimes the rules the government makes ends up back firing. Because of rent control, there is not enough rental housing in Ontario.
Decisions
Let's business and consumer decide how to use money, but they must follow government rules
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Command/Socialism
Disadvantage
Government attempts to manipulate the systems 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 - people starve. Government tells you what you can or can't do with your money. Taxes are very high.
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Advantage
Government can dedicate to a specific goal like building infrastructure to create jobs. Creates greater level of economic equality.
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