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Graded! Types of Economic Systems Olivia Smith, images - Coggle Diagram
Graded!
Types of Economic Systems
Olivia Smith,
Market Economy
Characteristics:
-Freedom of enterprise
-Little to no government control
-Private property
Advantages:
-Wide variety of products to choose from
-Competition
Disadvantages:
-Monopolies
-Poor working conditions
-Unemployment
(
https://www.wallstreetmojo.com/market-economy/
)
Command Economy
Characteristics:
-A central economic plan
-Government ownership
Advantages:
-Quick decision making
-Equality against citizens
-Focused on workers
Disadvantages:
-Lack of efficient resources
-Lack of innovation
-poor planning
(
https://www.wallstreetmojo.com/command-economy/
)
Traditional Economy
Characteristics:
-Centers around a family/tribe
-Majority of the time they have primitive occupations (farming, hunting, fishing)
-Community is self-sustained through fishing, hunting, farming
-Does not trade
Advantages:
-No wastage of goods
-Keeps the traditions and customs alive
Disadvantages:
-Isolates people within the economy
-Offers few choices
-Creates certain health risks
(
https://www.wallstreetmojo.com/traditional-economy/
)
Mixed Economy
Characteristics:
-Combines aspects of capitalism and socialism
-Protects private property
-Allows economic freedom
Advantages:
-Limits government interference
-Macroeconomic stability
Disadvantages:
-Market equilibrium is hard to maintain
-Risk of corruption
(
https://www.wallstreetmojo.com/mixed-economic-system/
)