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Economic Systems Coggle, Cheese - Coggle Diagram
Economic Systems Coggle
Command Economy
The advantages of the command economy, is low inequality & low unemployment.
The disadvantages would include lack of competition, and lack of efficiency in the market.
The command economy is when production is controlled by the people, and economics is controlled by the central government. The central government decides what is produced, and how much is produced.
North Korea is the most prominent country with a command economy, they use it to control their markets, and by controlling whats produced.
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Market Economy
Some advantages of a market economy are that increased efficiency, productivity, and innovation.
A market economic is a system where production and prices are determined by unrestricted competition between privately owned businesses.
Some disadvantages are tendencies of inequitable distributions of wealth, poorer work conditions, and environmental degradation.
The United States, England, and Japan are some examples of market economies.
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Mixed Economy
One disadvantage to this is there could be an instance where one group fails to uphold their responsibility to balance the power between them, and a power balance issue occurs
One advantage to this is that one group of people that control the economy cannot get too much control, as each group has the power to limit the power growth of one another
The United States has a mixed economy they use this to intervene in some aspects of the economy, while still allowing the market to run itself
A mixed economy has elements of market and command economies, where the government and people both control elements of the economy
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Traditional Economy
A traditional economy relies on customs and history, these help shape the goods that are produced and are available. The economy is usually based around hunting, fishing, gathering, and farming
An advantage of this is that there is not much change and that makes it reliable as there is very little variation
One disadvantage is that it might not be able to keep up with the changing world, as there is very little change
There are many examples of this, as many countries in Latin and South America, Asia, and the Middle East all have traditional economies.
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