Economic Systems

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Economic Systems by Mind Map: Economic Systems

1. Capitalist

1.1. Capitalist is defined as an economic system based on a free market, profit motive, competition and private ownership of factors of production.

1.1.1. An example of capitalism is a business that is for profit more than the welfare of their consumers. The United States, Germany, and Mexico are capitalist countries.

2. Communist

2.1. Communism is defined as an economy with collective ownership of property under a central government

2.1.1. An example of communism would be a dictatorship like Castro in Cuba In the 1980's. The former Soviet Union and present day China are communist countries.

3. Socialism

3.1. Socialism is defined as an economy in which key industries are government-owned but private ownesrhip of smaller business is allowed

3.1.1. An example of socialism is a business having a food drive to help the people in the community as well as managing their day to day operations. Socilalist countries include but are nt limited to: Canada, China, and Ireland.

4. The three economic systems used in the United States are capitalism and socialism. Sometimes a mixture of both.

5. All of these economic system are important to have be cause it gives structre to the business world, distrubute wealth evenly (in some cases), and manage avaible resources.