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Graded! Types Of Economic Systems image Achilles,Anthony and Marcus,…
Graded! Types Of Economic Systems
Achilles,Anthony and Marcus
Traditional Economy
Example: India has a caste system which restricts occupational choice
Characteristics
Economic questions are answered by habits and customs
children work the same jobs parents worked
Fear Change!
Advantages
Everyone knows which role to play
stable, predictable and continuous life
customs and traditions determine who is provided for
resource
Disadvantages
Individuals generally not free to make decisions on occupation
discourages new ideas, new technology, and new ways of doing things
strict rules designed by elders
Market
Example
Singapore & Hong Kong
Characteristics
Allows people to make decisions in their own best interest
Buyers and sellers exchange goods and services in a market
Market economics is based on capitalism
Advantages
Large variety of goods and services
High degree of individual freedom
Adjust gradually to change over time
Disadvantages
Not everyone is provided for
Workers and businesses face uncertainty as a result of competition and change
Does not produce enough public goods
Resource
Mixed Economy
Examples: United states
Characteristics: The US individuals have the right to choose, more than one producer of good/services insures choice, and individuals have the right to own their own property, including business.
Resources
Advantages:
Disadvantages:
Command economy
Examples: Cuba & North Korea
Characteristics
Government makes all economic decisions
All means of production and distribution are controlled by the government
Advantages
Little to no unemployment
fast decision making
Disadvantages
Consumers get low priority
Little freedom of choice- few products
Resources owned by the state are often wasted
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