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Four Types of Economic Systems: Lana, Andraya, Natavia - Coggle Diagram
Four Types of Economic Systems: Lana, Andraya, Natavia
Command System
Everybody is treated equally (in theory), the economic goals are clear, and it's good start for new societies.
Also known as a planned economy, the government determines: What to produce, how to produce, and prices.
Low worker motivation, the government doesn't always provide what the people want, reduction/imitation of personal choice.
North Korea: The state controls all production, and the government sets priorities/emphasises in economic development.
Traditional System
A system that relies on customs, history, and honored beliefs. They depend on agriculture, fishing, hunting, gathering, etc.
They use barter instead of money
Advantages to this system is that it is not as destructive to the environment as other systems and people understand their role and do ot rebel when they feel things are unfair.
A disadvantage is that they are more exposed and reliant on nature so when there is little food people starve and population growth is limited.
Before the immigration of Europeans there were traditional systems in the US. The Native Americans lived on the land and relied on hunting and gathering as there ways to stay alive. They had better immune systems
Mixed System
The United States uses this economic system and I know that because businesses are free to do what they want besides certain restrictions from the government. There is also things like the police or roads that are run by the government.
Disadvantages can be that the companies and businesses are limited on what they are allowed to do by certain restrictions given by the government.
People are free to run there businesses how they want but the government helps limit certain things like pollution so that factories cannot pollute the air too much. That way in the long run the air is cleaner.
A system in which the government has a minimal involvement in the economic system. The government allows economic freedom while still somewhat interfering in order to achieve certain social aims.
Market System
Description of the economic system~ This system made up of a network of buyers, sellers and other actors that come together to trade in a given product or service. Participants in this system include: Producers, buyers and consumers
Advantages of the economic system~ This system has many advantages like innovation, variety, and individual choice
Disadvantages of the economic system~ This system also has disadvantages such as a tendency for n inequitable distribution of wealth, poorer work conditions, and environmental degradation
ONE real-world example of a country/group that uses your economic system AND an explanation of how you know they use that system~ The US has a market economy, it's still used today because they allow businesses to set their own prices
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