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Graded! List of Economics Systems - Coggle Diagram
Graded!
List of Economics Systems
Traditional
Tradition & Custom govern economic decisions
Examples:
Brazil & Canada
Characteristics
1) Activities are usually centered towards the family, tribe, or ethic group.
2) Resources are allocated based on inharientence
Advantages:
1) Keeps Traditions and Customs alive as people preserve skills and trades in the community
2) No waste of goods since they're produced to meet the needs of the people
Disadvantages
1) People may become deathly ill/ starve if there is a lack of agriculture, hunting or fishing.
2) Lower Quality of Life
Resources Used:
[
https://www.carboncollective.co/sustainable-investing/traditional-economy#:~:text=The%20traditional%20economy%20offers%20less,whatever%20they%20produce%20or%20gather
.]
Command
The government and other central authority makes all economic decisions
Examples:
East Germany & North Korea
:
Characteristics:
1) Individuals have little, if any influence over economic functions.
2) Resources are owned by the government
Advantages:
1) Distributes wealth among society
2) Produces to fulfill needs
Disadvantages:
1) Infringes of personal freedoms
2) Cannot adjust to change
Resources used:
https://docs.google.com/presentation/d/14D6-nQBKxyrO0dCBfRx9GToS_Qk3yXgTlTozPYPMkUs/edit#slide=id.g4d6c3e82c0_0_1
Market
Decisions are made by the individuals competing to earn profits based on supply & demand
Examples:
Japan & Australia
Characteristics:
1) Resources are owned by the individual
2) Competition determines & price increase quality of products
Disadvantages:
1) Intense competition
2) Poor working conditions & uunemployment.
Advantages
1) Increased efficiency, production,innovation
2):A variety of choices for the consumer to select from
Resources Used:
https://www.wallstreetmojo.com/market-economy/
Mixed
Combines both a pure market & command. Government and the people share decisions
Examples:
USA & UK
Characteristics
1) Government guides & regulates production of goods and services
2) Resources owned by individuals
Disadvantages:
1) The market is tough to maintain because of public and private interest
2) Reduces compition
Advantages:
1) Limited government intervention
2) Reduces Marker failure
Resources used:
https://www.economicshelp.org/blog/glossary/mixed-economy/
https://www.wallstreetmojo.com/mixed-economic-system/
