Graded! Different Types of Economic Systems
Jayden Andino
Isabela Flores
Donovan Agard
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Traditional Economy
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Characteristics

  • Center around family or tribe
  • Exists in a Hunter-Gatherer and Nomadic Society
  • Trades Relies Heavily on barter
  • Produce only what you need (rare surplus)
  • They Eventually evolve to form some form of currency for trade
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Advantages

  • Keeps The Tradition and Customs Alive
  • No Wastage of Goods
  • Have Scope for Evolution
  • Environmental Friendly
  • Skilled and Talented People
  • Role Clarity and Satisfaction
  • Safe from Global Problems

Disadvantages

  • Starvation
  • Risk of Exploitation
  • Extinction of Natural Resources
  • Limited Growth Opportunities
  • Poor Medical Amenities
  • No Global Interaction
  • Technologically Backward

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Market Economy
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Mixed Economy
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Characteristics

  • Private Property
  • Freedom of Choice
  • Motive of self-interest
  • Competition
  • System of Markets and Prices
  • Limited Government

Characteristics

  • Co- Survival of Public and Private Sectors
  • Economic Planning
  • Safeguarding of Consumer Rights
  • Protection of Labor Rights
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Characterisitcs

  • Government control
  • Budget and Aloocation of Resources
  • Prioritization
  • No Competition
  • Authority

Advantages

  • Business Efficiency
  • Increased Productivity
  • Innovation for a Competitive Edge

Disadvantages

  • Lack of competition
  • lack of freedom
    ineffeciencies
  • prone to corruption
  • lack of choices

Advantages

  • A mixed economy safeguards personal freedom
  • A mixed economy reduces income disparity between sections of society by providing equal opportunities for employment and education.
  • A mixed economy enables central planning and control. Thus, economic upheavals are avoided.
  • A mixed economy helps poor economies to have fast and balanced economic development.
    -It promotes fair pricing and distribution of goods and services as government-owned bodies regulate the market.

Advantages

  • ensures full employment
  • gov can control inflation
  • the government can direct businesses to invest in certain sectors of the economy
  • the government can develop speechified industries

Disadvantages

  • Inequality
  • Negative Externalities
  • Limited Government Intervention
  • Uncertainty and Instability
  • Lack of Public Goods

Disadvantages

  • In a mixed economy, the market equilibrium is tough to maintain because of public and private interests.
  • Problems of corruption, Kickbacks
    , black market, nepotism are prevalent in a mixed economy.
  • Excessive state control in a mixed economy hinders the growth of private sector industries.

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