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Types of economics system - Coggle Diagram
Types of economics system
Capitalism
Capitalism is an economic system in which the means of production and distribution are privately or corporately owned. Operations are funded by profits, and not controlled by a state government
countries that practice capitalism
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Hong Kong
Singapore
New Zealand
Switzerland
Australia
Estonia
Canada
Main Characteristics of Capitalist Economies
Demerit
A Two-Class System. ...
Profit Motive. ...
Minimal Government Intervention. ...
Competition. ...
Willingness to Change.
Merit
Variety of Goods and Services
Automatic Working
Economic Freedom
Socialism
Under capitalism, all farms, factories and other means of production are the property of private individuals and firms.
countries that practise socialism
China
Denmark
Finland
Netherlands
Canada
Sweden
Norway
Main characteristics of socialism
Collective Ownership
Economic, Social and Political Equality
Economic Planning
No Competition
Positive Role of Government
Merit
Greater Economic Efficiency
Absence of Business Fluctuations
Demerit
Loss of Consumers’ Sovereignty
No Freedom of Occupation
Malallocation of Resources
Islamic economic
According to Nomani and Rahnema, Islam accepts markets as the basic coordinating mechanism of the economic system. Islamic teaching holds that the market, given perfect competition, allows consumers to obtain desired goods and producers to sell their goods at a mutually acceptable price
Countries that practise Islamic econimics
MALAYSIA
United Arab Emirates
Bahrain
Saudi Arabia
Oman
Pakistan
Main of characteristics Islamic economics
Basic consumption is a fundamental part of all economies, including those who follow Islam. People have needs and businesses exist to fulfill them either through goods or services.
The economies of the Islamic state should run without interest, which means that the financial system does not use interest as part of the lending procedures when running their banks and financial institutions.
Merit
It reduces the gap between the rich and poor
It reduces proverty
It create 100% employment
Demerit
Islamic economic system based on the moral values and implementation is difficult
Calculation and Collection of Zakar and Usar cann’t be verified and payer’s calculation is deemed to be true
Escape of the responsibility of Zakat and UShar’s is easy.
Mixed economy
A mixed economic system is a system that combines aspects of both capitalism and socialism. A mixed economic system protects private property and allows a level of economic freedom in the use of capital, but also allows for governments to interfere in economic activities in order to achieve social aims
Countries that practice Mixed economy
Iceland
Sweden
France
United Kingdom
United States
Main characteristics of mixed economy
Co-existence of the Private and Public Sectors. ...
Existence of Joint Sector. ...
Regulation of Private Sector. ...
Planned Economy. ...
Private Property. ...
Provision of Social Security
Merit
Best Allocation of Resources
General Balance
Welfare State
Demerit
Non-Cooperation between the Two Sectors
Inefficient Public Sector
Economic Fluctuations