Economic Systems

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Economic Systems by Mind Map: Economic Systems

1. Captialism

2. Definition of Captialism Economy

3. Capitalism is an economic system where private entities own the factors of production.

4. Examples of Capitalism

5. Capitalist society is one that supremely values private property rights, the enforcement of contracts and voluntary exchange. A few Capitalist countries are New Zealand, chile, Sweden, and Georgia to name a few.

6. Pros

7. Cons

8. Capitalism creates an economy that is based on consumpution, It places the needs of the business above the needs of the individual, equal opportunities can be brief and fleeting, People with an inability to be productive are left behind, Even when workers are needed there is no incentive to pay them fairly.

9. Capitalism encourages innovation, It is a society that is based on the service of others, It promotes equality, provides freedom, promotes self-regulation, and embraces a smaller world.

10. Socialism

11. Definition of Socialism economy

12. Socialism is an economic system where everyone in the society equally owns the factors of production. The ownership is acquired through a democratically elected government.

13. Examples of Socialism Economy

14. The former Soviet Union is an example of Socialist Economy. Cuba would be an example of a socialist nation. Its economy is state run and it lacks a stock exchange.

15. Pros

16. Every citizen will have access to education and health care, It results to a classless society, It allows for balance in wealth and earnings, It eradicates monopolies in corporations.

17. Cons

18. It gives the government much if not full control, it demands higher taxes, the rights of workers might be too much, people have to deal with bureaucracy, It can result to lack of motivation.

19. Communism

20. Communism is an economic system where the collective owns all property which includes the four factors of production. Labor, entrepreneurship, capital goods, and natural resources.

21. Pros

22. The good thing about communismis that everyone is equal and no one is left alone. It makes health care, education, and employment accessible to citizens and it does not allow business monopolies.

23. Cons

24. Some cons would be that it hampers personal growth: too controlling on the lives of the people. It dictates on people, it does not give financial freedom. As opposed to a free market economy, the command economy which is practiced by most communist countries ties the hands of business people.

25. Examples of Communism

26. In 1948, North Korea became a communist country. After the Indochina War Vietnam became divided. Other Communist countries would be Cuba, China,and Laos just to name a few.

27. Definition of Communism

28. Mixed

29. A mixed economy is defined as a system blending elements of market economies with elements of planned economies, free markets with state interventionism, or private enterprise with public enterprise.

30. Mixed economy is one where there are both government owned businesses and private owned businesses. Majority of the countries are mixed economies. Such as England, USA, Canada, and India just to name a few.

31. Pros

32. Cons

33. If the market has too much freedom it can leave the less competitive members of society without any support from the government. Central planning of government industries can also create problems. The defense industry could just so happen become a government subsidized monopoly or oligarchy system which can put the country in debt.

34. *goods and services are distributed to where they are needed. It allows prices to measure supply and demand. It rewards the most efficient producers with the highest profit.

35. Examples of Mixed Economy

36. Definition of Mixed Economics