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Economic Systems - Coggle Diagram
Economic Systems
Mixed
Pros: Supply and Demand are not measured through regulation, improves production efficiency.
Cons: Possible corruption or mismanagement, harsh government regulation can put places out of business.
An economic system blending elements of a market economy with elements of a command economy, where both people and government can have a say in decisions regarding distribution and production.
The United States uses the mixed market system. Things are mostly private while some things like letter delivery are government-run.
Command
Pros: Does not allow monopolizing, streamlines government and scoiety.
Cons: Restricts freedom, may ignore societal needs.
An economy in which production, investment, prices, and incomes are determined centrally by a government.
North Korea has a complete command system in place, limiting many freedoms on its people.
Traditional
Cons: High levels of competition, bartering system is not as advanced as a monetary system.
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Pros: Only produces what it requires, allows for much movement and freedom.
An economic system in which traditions, customs, and beliefs help shape the goods and services the economy produces, as well as the rule and manner of their distribution. In most cases they barter instead of using established monetary systems.
Market
Pros: Competition can drive down prices, and there is less waste if there is less demand.
Cons: In the end not everyone ends up being equal, and monopolies can form to artificially inflate prices or supply.
An economic system in which the decisions regarding production and distribution are guided by supply and demand. Ran by the people, not the government.
Hong Kong uses the market system, and they possess a capitalist culture along with having almost the highest GDP in the world.