Economic Systems

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Economic Systems by Mind Map: Economic Systems

1. Capitalism

2. Economic system that is mostly privately owned for production and distribution of goods to increase profits and wealth.

3. An example of Capitalism, a business owner opens a business, they then hire an employee to work the business, the owner collects the profits that employee makes, and pays employee a percentage of those profits.

4. Pros Incentives to be wealthy and encourage innovation. Efficient and able to create goods that are in demand. Economic Freedom and political freedom. More innovative, and able to create profitable goods. Economic growth and increased wealth

5. Communism

6. Pros Promotes equality. Higher employment rates. Better educated with advanced degrees to improve skill set.

7. Cons Little incentive to be hard workers or produce quality goods. Government control, and limited to protest government actions. Limited freedom. Limited competition and choice with goods. Earnings are limited.

8. Mostly public owned business with a small portion of privately owned businesses. Higher government control.

9. In China the government controls the manufacturing industry, which creates profit for the government by distribution and exporting of manufactured goods like toys and consumer demanded products.

10. Socialism

11. Pros Workers own means of production, and profits spread equally to workers according to their contributions. Provides for individuals who can’t work. Eliminates poverty Workers are employed where best suited, and for less desirable jobs they are better compensated to increase interest

12. Cons Relies on cooperative human nature. Not as innovative as other economic systems. Strong government influence where power can be abused.

13. An economic system determines who controls the factors of production and how it is distributed and who capitalizes on it. It is a measure put in place to create less chaos in a society

14. Public ownership of businesses, with some privately owned businesses. Government controlled healthcare, education, and high taxation. Everyone in society equally owns factors of production.

15. Private ownership of land and businesses. There is some regulation from the Government. There is a balance between freedom and equality.

16. The US is an example of a mixed economy where the government offers assistance with welfare and unemployment benefits, and creates minimum wage policies that private and government ran entities need to follow those policies

17. Pros Distributes goods where most needed. Most efficient producers are rewarded with highest profits. More innovation and higher efficiency.

18. Cons To much supply or to little supply could be created by to much government influence. Government control of trade. Government owned entities have fewer incentives.

19. Cuba is example of Socialism. The economy is government regulated. All healthcare is administered through the government.

20. Cons Can become Monopoly and exploit consumers. Rich get richer and the poor become poorer. Boom and Bust cycles. Inequality and social division.

21. Primary Economic system of the United States

22. Mixed Economy