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Economic Systems , image , image, image, image, image - Coggle Diagram
Economic Systems
Mixed
Sometimes the government goes to much to one side of market or command. it may fail to encourage business or fail to protect the poeple.
producers and consumers have a say in some of the decisions that affect them, but the government does make some decisions to regulate and encourage people's quality of life. in short, people are allowed to spend their money as they like but still need to follow the government's rules.
The government can make regulations to protect the environment, workers, and consumers.
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Market
When many businesses compete for the same market, they tend to keep prices down to attract consumers. this allows for more freedom of what you can do with your money. but because the government has less rules about money some companies pay less taxes.
Because profit is the single driving motive of business, they generally avoid taking measures to protect the environment or increase social service and tend to be more greedy with their money. this leads to economic inequality.
Producers are in charge of the economic decisions, they decide what to sell and not to sell. Consumers are free to decide how they spend their money. The government tries not to intervene and only provide services where their needed.
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Command
Government decisions are not always made in the best interest of the citizens. For example, during the 1990s. The government mismanagement led to famine in north Korea. About 1 million people died of starvation because the government would not accept food aid from other countries. in this kind of economy the government tells you what you can and cant do with your money and the taxes are way higher.
The government is in control of all goods and services, and make all the economic decisions. The citizens have little freedom to decisions that affect their country. The citizens do as their told by the government
The government can focus all of its resources on one goal, such as China's push to increase economic development. this usually leads to greater levels of economic equality.
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