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2.-ECONOMIC SYSTEM - Coggle Diagram
2.-ECONOMIC SYSTEM
Tradition Based Economic System:
Artisand formed
guilds
guilds regulated the production of each trade
Tradition based systems allow very limited growth
in the past were based in
customs
laws
beliefs
the purchase goods and consume
only the things they produces
AUTHORITY:
it make decisions of products
for example
Russia nowadays
They try to have social equality
prevent the incual distribution of weath
The state decided the production
Nowadays, Northkorea continous like this
The mixed Economy System:
determined by free market and the state
is producer by private companies
at the lowest possible cost and by the state
based on its goals
Economic System:
basic economic issues:
how to produce
for whom did you produce
what to produce
Capitalism and Free Market system:
this are the factors:
Investment of capital:
in economic activity
in order to maximise potential profits
Free market
is an economic system
the prizes are stand supply and demand
Private ownership:
menas of production
includes physical and financial capital
Price:
is the value assigned to a product
demand:
The amount of a product
that consumers purchase at a specified price.
supply:
The amount of a product
that producers offer for sale at a specified price.
Prices:
increase
supply high
the demond law and is call suprplus
decrease
suply law
demand high
they are shortage of products
competition:
means produce a good
at the lowest possible cost
and paying the lowest price fo product
