Economic Systems


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Economic Systems by Mind Map: Economic Systems

1. Capitalism is a form of economy where all or most of production and distribution is owned and operated for profit by individuals.

1.1. America is considered to be a capitalist country because businesses are not heavily regulated by the government, and can be individually owned for profit.

1.2. Pros: A free market creates high competition which provides high quality products in the market.

1.3. Cons: High corruption and a division of classes.

2. All countries are mixed, and have moved to either Free-Market economies and Command economies.

2.1. The US and Canada is a free-market economy with some socialism policies.

3. Communism is a system where the government owns almost all of the means of labor and productions

3.1. North Korea and Cuba are both examples of communist countries that have poor economies.

3.2. Pros: None

3.3. Cons: Free will can be limited. The job held or the place lived can be controlled by the state. Supply and Demand is hard to determine, so there can be shortages of production.

4. Socialism is an economic state where the government owns most basic companies, and redistribute money equally among the people.

4.1. Netherlands, Sweden, and Norway are all examples of functioning socialist economies.

4.2. Pros: Free Health Care, free education, free childcare, less hours worked per week, longer vacations

4.3. Cons: High tax rates, less incentives for business owners.

5. An economy drives the people to work for something and creates money for the GDP.