Economic Structure

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Economic Structure by Mind Map: Economic Structure

1. Government: This is a command economic system

1.1. Controls most of economic structure.

1.2. A concentrated group of leaders helps influence this group

1.3. Maximixes social welfaire instead of profit, can prevent abuse of monopoly power, prevent large quantities of unemployment, can produce goods to benefit society to ensure all basic necessities are met, etc.

1.4. The Down side to command system is that they usually do not have all the information they need in order to produce what they need/want too, decisions could be made by people who do not know what has even happened, cannot respond to consumer preferences, threat to democracy and liberty, etc.

2. Goods and services such as trading: This is a Traditional economic structure

2.1. This is the oldest form of economic structure and is not very detailed.

2.2. These are influenced by traditions and beliefs.

2.3. There are some benefits of this economy, everyone knows what they are going to receieve because they can touch and see it before purchasing and can even barter it or trade, more sustainable, it has little competition so it holds the feeling of being felt together and everyone working as a team.

2.4. There are also cons of this type of system as well, this type of economic system does however depend solely on mother nature which means if they cannot depend on the sun or the rain to provide then they cannot depend on crops to produce the goods they need to sell. It can however all be negative towards the environment as well, too much cutting of trees for fuel, and too much fishing for food can take away from the animal population (and so forth). It can become overpowered, and it does not promote a healthy life.

3. Free Market: This is part of the Market economic system.

3.1. Little to no, government interference.

3.2. Supply and demand is the drive for this group.

3.3. This structure promotes innovation and provides the economy with the fastest supply of goods demanded.

3.4. The disadvantage of this group would be those who do not have access to the supply chain or demand chain, which would be elderly, children, disabled, etc.

4. Dual-Economic systems: this is part of a Mixed economic structure.

4.1. This economc structure is under very harsh survelience at all times in certain segments of the economy.

4.2. THis group is a mix of command and market, not just do as you please but there will be some areas where the government steps in.

4.3. This is the economic system that our Country follows because we follow capitalism and socialism.

4.4. The good use of this system is that we can be able to do as we wish to a degree using this type of economic system in our country while still have the authority of government when needed.

4.5. The disadvantage of this economic structure is that most of the time in these types of structures they do not lean towards free market, they lean towards government control.

5. Without an economic system we would not have rules and regulations to follow, we would not have farming nor would we be able to have just enough freedom to do as we wish but not too much where people are killing other people constantly and burning peoples houses down, or tearing up money, etc. We need the economic structures based upon the type of country it is to provide what we need in our government and free lives.