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GRADED! The Four Economic Types By…
GRADED!
The Four Economic Types
By William Barnes/Kelsey Brown
Market Economy
an economic system in which production and prices are determined by unrestricted competition between privately owned businesses.
Examples
New zealand and Japan
Characteristics
1.Private ownership 2.Freedom of choice 3. Business Competition 4.Limited government intervention.
Advantages
Increased production, efficiency and selection.
Disadvantages
1. Monopolies 2.Poor working environments 3. No government intervention 4. Unemployment
Mixed Economy
an economic system combining private and public enterprise.
Examples
United States
United KIngdom
Characteristics
1. Private Property 2. free market and laws of supply and demand determine prices 3. Self interest of individuals.
Advantages
1. Efficient production and allocation of resources 2. Improvement of social welfare 3. Weaker sections gets benefits 4. Less economic imbalances 5. Governments control monopolies
Disadvantages
1. Difficulties faced in public sectors 2. Taxes are applied 3. If the business fails, you fail
Command Economy
an economy in which production, investment, prices, and incomes are determined centrally by a government.
Examples:
North Korea
Soviet Union
Characteristics
1. Central Economic Plan 2. Government ownership of the means of productions 3.Social Equality
Advantages
1. Low levels of inequality 2. common objective of replacing profit as the primary incentive of production.
Disadvantages
1. Lack of competition 2. Lack of innovation and efficiency.
Traditional Economy
A traditional economy is a system that relies on customs, history, and time-honored beliefs.
Examples
Haiti and The Amish
Characteristics
1. Geographically and locally based
2.Has a bartering system
3.Has little to no surplus goods
Advantages
1. Offers less threat to the environment 2.There is no overproduction 3. Conventional occupations
Disadvantages
1. Risk of Exploitation 2. Starvation if there is a food shortage 3. Not stable
LInks 1.
https://www.wallstreetmojo.com/traditional-economy/#:~:text=Traditional%20economy%20disadvantages%20are%20as,the%20land%20and%20natural%20resources
. 2. www.investopedia.com
