Economy Systems

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Economy Systems by Mind Map: Economy Systems

1. Mixed Economic System

1.1. Pros: In this economy they have both Capital and Socialism type of where the government may be into some business and they may not. In these systems a traditional economy does not work well, the government normally have a say the education, logistics and transportation

1.2. Cons: Since the economy is mixed like in the United States there may be laws passed that could lean to more of a command or socialism economy it is always in the air depending on how the world is going

2. Market Economic System

2.1. Pros: This a form of capitalism meaning the government does not govern over each company but they do have regulations that everyone goes by. In this type of system you could generate large revenue and could be safe from a socialism type of economy.

2.2. Cons: In this case having a monopoly may seem great but could be considered a con because it is unfair to own everything and not let smaller companies benefit from the same product or services that is being sold. Some case company is inherited, lack of government intervention when it is needed. Prices is not controlled.

3. Command Economic System

3.1. Pros: Only a step up from a traditional economy but in this system the resources are rewarding meaning prices are set because the government regulates it and the unemployment rates are not as bad because the resources set by the government is used to economically run the country.

3.2. Cons: In this system the government only cares about the most value resources meaning if you are in the farming business and it is not booming the government will not focus on you and focus on may on manufacturing and you could be out on your own.

4. Traditional Economic System

4.1. Pros: In a traditional economic system it will have less potential of an environmental destruction people have a really good understanding on how they will buy or sell their services and their resources. This economic system is family based so the business can be passed down to younger children or family members.

4.2. Cons: Although the environment may not hurt it is limited to the environment meaning they are not flexible. Bigger companies can take over the market in the area. This system may lack good health care and benefits and the overall quality of life may be lacking

5. It is important to have an economic system because without some rules and regulations or just simple guidelines it could be very dangerous to a country from a financial, education and safety standpoint