Economic Systems

Economic Systems

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Economic Systems by Mind Map: Economic Systems

1. Traditional Economy

1.1. Traditional Economy is based on traditional beliefs and some ideals based on tradition. Some focus on the Traditional Economy is through agriculture and hunting.

1.2. An example of a Traditional Economy are Africa, Asia, Latin America, and the Middle East. These countries thrive on agriculture, hunting, and fishing to supply for the population.

1.3. There are Pros and Cons to the Traditional Economy. A Pro to the ways of tradition are less threat and minimal waste to the resources. A major con to this economy is starvation based on minimal goods in off season or weather changes. There is a large threat to survival based on shortage.

2. Command Economy

2.1. A Command Economy is monopoly over the market. The government has dictation and control over market growth and production.

2.2. An example of a Command Economy are Cuba, Korea, and the Soviet Union. These regions have communism has the primary dictation within their economy.

2.3. There can be more cons than pros in a Command Economic system due to fear based and control leadership. However, pros to this economic system are low unemployment and no inequality problems. The cons to this economic system are supply not in line with demand, low innovation, and no regard for society.

3. Mixed Economy

3.1. A Mixed Economy is a mixture of all three economies: Traditional, Market, and Command. Mixed Economies government primarily dictates the goods produced.

3.2. The United States is an example of a Mixed Economy with free market, small businesses, but the government also makes decisions based on goods allowed.

3.3. The Pros and Cons of a Mixed Economy are many as is filters all systems. One major pro is that it allows for supply and demand to dictate and decide. One major Con is waste! Wasting resources is a huge issue and is one that the U.S. faces regularly.

4. Market Economy

4.1. A Market Economy is an economy where the government has no dictation or control over the market and goods produced. The citizens have control and the businesses offer more demand on what is brought in.

4.2. An example of a Market Economy are Mexico, United Kingdom, Germany, and Canada based on Supply and Demand. The United States are also a part of this example because they thrive on a Mixed Economy which also integrates this operation.

4.3. There are Pros and Cons to the Market Economy as the supply and demand can fluctuate the economy regularly. One major Pro about Market Economy is advantage on growth, wealth, and market competition due to innovation. One major Con is inequality.