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Economic Systems, Mixed, Market/Capitalism, Command/Socialism - Coggle…
Economic Systems
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The government can makes decisions that the people might not agree on. Citizens must pay high tax to the government. Citizens have less control of influence over the system. The government tries to create economic equality.
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There is a social safety net to catch you $$$ if things go bad. If the government has a specific goal they use tax money to get it done quick. You don't have to pay for funds like University because the government uses it from tax money.
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Cuba, Norway, and Sweden are examples of a Command/Socialism Economy
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They focus on growing the economy, they don't care much about social services. The government doesn't focus on paying for the cost of necessities like health care, environment, workers, and social services; meaning that their costs will be high.
Producers, and consumers make decisions. For example, if a company think they can make a profit selling a product, they do it. When the consumer thinks the price is fair and are interested, they buy it.
Prices are cheaper as the system allows for competition between businesses. This produces stronger economic growth. The government only provides basic services such as defense infrastructure and police, meaning that citizens pay less tax.
USA, Singapore, and Taiwan are an example of a Market economy.
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They protect the nation, workers, and environment. Government can make changes to protect things like the air and water. You are still free to make choices about your money as long as you pay your taxes.
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Individuals and businesses are able to make many decisions. The government make some decisions to encourage/improve people's lives. Producers, Consumers, gov. makes rules to protect workers (minimum wage), health care, try to protect environment.
The government can sometimes make mistakes and fail to encourage business or protecting the citizens. They might make a rule to protect people that might not work and things end up costing more.
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