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Economic systems - Coggle Diagram
Economic systems
command system
Advantage: The government can focus all of its resources on one goal. All economic decisions re centralized.
Disadvantage: Government decisions are not always in the best interest of the citizens. Citizens cannot provide their input in government decision
description: The government controls all the resources and make all of the economic decisions. Citizens are expected to follow the government's orders
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Market system
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Disadvantage: Because profit is the single driving motive of business, they generally avoid taking measures to protect the environment or increase social services
description: Producer and consumer make all the economic decision. The government tries to not interfere with the economy.
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Mixed system
Disadvantage: Balancing the goals of encouraging business and protecting citizens is a challenge of government
who make decision: People, government, and business.
Advantage: The government can make rules to protect the environment, workers, and the consumer.
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Description: Individuals and businesses can make decision, but the government also makes decisions for the economy.
traditional system
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disadvantage: They have bad health care, and not enough knowledge.
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description: Usually farming and hunter-gather societies that rely on past practices, knowledge, and tradition.
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