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Graded! Types of Economic Systems featuring Salome, Carolay, and Ricardo…
Graded! Types of Economic Systems featuring Salome, Carolay, and Ricardo
Command economy
North Korea 🇰🇵
Cuba 🇨🇺
Characteristics 1. Government makes all economic decisions 2. All production and distribution is controlled by the government
Advantages: 1.speed in decision making 2.low to none employment
disadvantages: 1. inefficiency 2. Lack of Competition Inhibits Innovation
link:
https://www.investopedia.com/ask/answers/032515/what-are-advantages-and-disadvantages-command-economy.asp
Mixed Economy
:
Characteristics
1-It safeguards private property
2-It permits prices to be determined by the free market and the principles of supply and demand
3-It is motivated by the self-interest of people
4-It enables the government to protect both the people and the market.
Advantages
-There are both public and private sectors
-Leads to economic growth
-Freedom of choice
-Provide employment, good education, and health care
Disadvantages
-Both the public and private sectors have difficulties
-High personal income taxes
-Government control
-Difficulties in financing social programs
Vietnam
traditional economy
hunters and gatherers
open field system of farming
Characteristics 1. Choices are determined by the government 2. Farming, gathering, and hunting are done as the generation before
advantages.
Individual roles are clearly defined
no goods are wasted
little friction among member because there is no competition
disadvantages
does not allow development or growth
does not take advantage of technology
little social ability
market
Japan 🇯🇵
USA 🇺🇸
Characteristics: 1. private property 2. freedom
Advantages
limited government interference
degree of equality
Disadvantages: 1. higher taxation 2.corrupt and kickbacks
link:
https://www.wallstreetmojo.com/mixed-economic-system/
China
