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Economic Systems, Examples - Coggle Diagram
Economic Systems
Mixed Economy
Advantages
The government can make laws to protect the environment, workers, and consumers.
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Economic Decision Making
Decisions are made in ballots between producer, consumer and government
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Command Economy
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Disadvantages
The government does not always know what the people want or need.
High taxes, lots of government manipulating the economy and there can be a lot of poverty.
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Market Economy
Disadvantages
Businesses controlling the economy's primary motivation is profit and not worker's rights or the environment.
Advantages
Allows competition between business which tends to lower prices or increase quality.
There is a balance between supply (producer-business) and demand (consumer)
Economic Decision Making
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Producers will create a product if they think they can make a profit and the consumer will purchase it if they think the price is fair.
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