Please enable JavaScript.
Coggle requires JavaScript to display documents.
ECONOMIC SYSTEMS - Coggle Diagram
ECONOMIC SYSTEMS
Tradition-based economic system
Production
defined by rules
for who
how to produce
what produce
depending the resources in each region
power of market
iniciative for an activity
Present day society
tradition-based societies
little changes
preserve the community
economic growth
livestock
municipalities councils
owned most of the pastureland
best interest
natural resources
used for production
main economic activity
municipality's resident managed the land
nowadays
destipe the power of globlisation
some groups
the Arctic Circle
the Amazon
Africa
Southeast Asia
Oceania
still based on tradition economic activity
Tradition based systems
allow very limited economic growth
shelf consumption
substistence
characteristics
purchase few goods
consume only what they consume
generate little surplus
production limited to archieving self-suficiency
The mixed economic system
most countries have it
Ireland
Sweden
France
UK
USA
Russia
avoid both negatice effects
enequal distribution of wealth
lack of efficiency that characterises authority-based systems
deals with basic economic problems
but state acts as authority to help guarante equal opprotunities
colects taxes
to finance the welfare state
to invest in
goods and services
social scurity benefits
other kind of support
Capitalism and the free market system
Capitalism
is a socioeconomic system
Private ownership
production includes
physical capital
financial capital
Investment of capital
maxime potential profits
free market
determines what to produce by economic agents
regulates production and sale of goods
based on prices established
supply
demand
definitions
price
value asignedd to a product or service
supply
productss available on market
demand
products or service that consumers want buy
prices decrease
supply high and demand low (creates a suplus)
companies compete to sell reducing prices
prices increase
demand high and suupply low (shortage of products)
consumers wailled to pay more
ecomonic agents
their own interst
poduce a product at the lowest possible price
paying the lowest possible price for a product or service
decitions agents make
not restriction-free
factors that influence
inequiality between different economic agents
relationships with power
ecological frameworks
social
institutional
unequal distribution of wealth
among economic agents
Authority: the central planning system
Free market system
supply and demand
determine what to produce
authority
generaly represents the state
make decitions
historicaly most developed
communist countries
countries based on real socialism
want social equiality and pavement injustices
inicual distribution of wealth
not always efficient
states prediction's can be wrong
production processes very conplicated bureaucracy
North crea only follows this economic system
changed system
Laos
China
Vietnam
Cuba
Belarus