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Economic Systems, Economic Sectors - Coggle Diagram
Economic Systems
Command System
Advantages: The government can focus all of it's resources on one goal. Such as China's push to increase economic development.
Disadvantages: Government decisions are not always made in the best interest of the citizens. For example, during the 1990s bad decisions in the North Korean government led to famine.
Decisions: Government, dictator.
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Description: Citizens n these countries have very little economic freedom. The government owns all economic resources and sources of wealth. Cuba, North Korea.
Mixed System
Disadvantages: Sometimes the government make wrong decisions and fail to protect the people or fail to encourage businesses.
Advantages: The government has the ability to protect the environment, workers and the consumer.
Decisions: Consumers, businesses, government.
Description: In mixed systems businesses and consumers are allowed to make their own decisions however the government also makes some decisions regulate businesses or to make the quality of life better in that country.
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Market System
Decisions: Businesses, consumers.
Advantages: Businesses in market systems tend to have lower prices on their goods to attract more customers in buying their goods.
Description: In the market economy, producers and consumers make all economic decisions. Producers decide what goods and services to offer. Consumers are free to decide how they are going to spend their money.
Disadvantages: Most businesses in market systems are driven by the only thing that keeps them running, profits. this leads to them neglecting taking measures to keep the environment safe or increase social services.
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Economic Sectors
Secondary Sector
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Description: Manufacturing, turning a raw resource into a finished product.
Example: Factory workers making fabric ready to be shipped to hospitals. An example of a real time producer of fabric for medical gowns is GownFabric. GownFabric make fabric ready to be bought by factories.
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Tertiary Sector
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Level of Development: Found in mostly highly developed countries but some low developed countries too.
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Example: Medical workers wearing the medical gowns in a hospital. Mackenzie Health is a hospital in Richmond Hill, Ontario that put together the fabric made by GownFabric to be made into medical gowns.
Quaternary Sector
Description: Knowledge economy, data, research, tech and software.
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Example: A person taking in data about the current sales of medical gowns being sold. In places like GownFabric there are sales managers and people that also work below them to track the sales of their medical gowns.
Primary Sector
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Example: A person shearing a sheep for cotton/fabric ready to be shipped to factories. Chemline Plastics is a factory in Thornhill, Ontario that make oil ready for fabrication.
