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Economic Systems - Coggle Diagram
Economic Systems
Mixed
Disadvantage: The government sometimes strikes the wrong balance. It may either fail to encourage business or fail to protect the people. Because of rent control the is not enough rental housing in ontario
Decision: Let's businesses and consumers decide how to use money but they must follow government rules
Advantage: The government can make regulations to protect the environment, workers, and the consumer
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Market/Capitalism
Disadvantage: Because profit is the single driving motive of businesses they generally Avoid taking measures to protect the environment or increase social services. Tends to create more economic inequality
Decision: The government has low control over the countries decisions and the producers decide what to make in order to make profit, the consumers decide what they want to buy
Advantage: When many businesses compete for the same market they tend to keep price down to attract consumers More freedom to decide what you would like to do with your money, Because the government makes less rules about money so companies and business pay less tax
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Command/Socialism
Disadvantage: Government decisions are not always made in the best interest Of the citizens for example during the 1990s 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
he government attempts to manipulate systems to create
equality. Government tells you what you can or can't do with your money
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Advantage: The government can focus all of its resources on one goal such as China's push to increase economic development.Creates greater level of economic equality
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