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Economic systems - Coggle Diagram
Economic systems
Command economy
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Example
Cuba
Unlike free market economy, command economy actually do exist in certain countries
Problems
Inefficiency, governmental, shortages, surpluses, less choice and less freedom
Free market economy
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Example
Singapore
There is no such economy with completely free market, however some have less government intervention than others
Problem
Inequality, market failure and monopoly
Mix economy
Mix economy is the most widely used economic system, as within this system country can allocated their system more to the free market or to command depending on their own needs
Traditional economy
This economic system now only exist in traditional tribes, where goods production and distribution are driven by beliefs, customs, culture, and traditions. Within this economy, there is no currency and it commonly they are isolated from the rest of the world