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Economic systems, Economic Sectors - Coggle Diagram
Economic systems
Command system
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Description
Citizens in these countries have very little economic freedom and the government owns all economic resources and sources of wealth. Cuba, North Korea.
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Disadvantages
The government can make bad decisions and decisions that are not in the best interest if its citizens.
Market system
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Advantages
Because the government does not control companies and businesses, businesses are free to control their prices of products and their products have the potential to be cheaper.
Description
In a market economy, producers and consumers make all of the economic decisions. Citizens are free to choose how they use and spend their money and the government tries not to interfere with the economy. Taiwan and the USA are market economies.
Disadvantages
Since most of the profit is directed to businesses, there is less focus on enviromental and social issues.
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Mixed system
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Description
People and businesses are allowed to make their own decisions but the government can still make laws to help improve quality of life and help support businesses. The government tris to create a balance between quality of life of citizens and encouraging the economy. Canada, USA, France.
Advantages
The government can make good balanced rules for the environment, workers and consumers.
Diadvantages
Governments may make unbalanced decisions and it may fail to protect people and fail to support businesses.
Economic Sectors
Secondary sector
Description
Manufacturing, refining, processing.
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Tertiary sector
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Example
The Tuna is then sold in fish markets across japan at auctions and throughout the world in grocery stores such as metro, longos, etc.
Quaternary sector
Description
Knowledge, software, economy,
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Example
Researchers from Green Peace tag and track tuna via satellite for conservation purposes and in order to make sure that tuna fishing is sustainable for the future
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