Economic Systems Mind Map

1. Traditional Economic System

1.1. In this type of economic system a surplus would be rare. Each member of a traditional economy has a more specific and pronounce role, and these societies tend to be very close-knit and socially satisfied. They lack access to technology and advance medicine.

1.2. Example Of traditional Economic System is an economy where cows can replace cash and where communities can literally be on the move looking for better economic conditions

1.2.1. Pros: Well Known Cons: It is dependent on mother nature

2. Mixed Economic System

2.1. A economic system is a cross between a market economy and command economy. In most common types of mixed economies, the market is more or less free of government ownership.

2.2. Mixed Economic System is Capitalism and socialism

2.2.1. Pros:First, it distributes goods and services to where they are most needed. Con:if the market has too much freedom, it can leave the less competitive members of society without any government support.

3. Having a economic system is important because it helps keep a balance and keep the government from complete control

4. Market Economic system

4.1. In this type of economy, there is a separation of the government and the market. This separation prevents the government from becoming too powerful

4.2. Example of Market Economies are Capitalist Economy. The profit motivates and drives all commerce and forces businesses to operate as efficiently as possible to avoid losing market shares to competitors

4.3. Pros: Driven by competition Con : Creates a race to the bottom

5. Command Economic System

5.1. In a command economy, it is theoretically possible for the government to create enough jobs and provide goods and services at an affordable rate. However, in reality, most command economies tend to focus on the most valuable resources.

5.2. Example of Command is a communist society. Cuba, North Korea and the former soviet union are examples of countries that have command economic

5.3. Pro: Low level of inequality Con: Lack of efficiently