Economic Systems

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Economic Systems by Mind Map: Economic Systems

1. Capitalism

1.1. Capitalism is where private companies own the factors of production. Controls what goes in and what comes out.

1.1.1. Under a capitalist economy, businesses are started up by private corporations and then branch out to become a franchise. They then hire chief executives to continue to run the company; all while still making a profit from the company. Even if they're not directly working with the company like the used to.

2. Socialism

2.1. a political and economic theory of social organization which advocates that the means of production, distribution, and exchange should be owned or regulated by the community as a whole.

2.1.1. g

2.1.2. It is important to have an economic system because

3. Mixed Economy

3.1. A mixed economy consists of both private and government/state-owned entities that share control of owning, making, selling, and exchanging good in the country

3.1.1. Here in the United States, we would fall under this particular economic system. Reason being it has all the components of a market economy. Allows prices to measure supply and demand. Supports the innovation to meet the customers needs and provide products that are more efficient and more affordable.

3.2. In the United States, I believe that we fall under the Mixed Economy system. We have traditions from both socialistic and capitalistic economies. In doing so, it protects private businesses and provides economic freedom; while also allowing the government to come in when need be to keep funds in line for infrastructure, aka taxes.

4. Communism

4.1. a system where all property is public and people work and are given things by the government according to their needs

4.1.1. Countries that fall under the communistic economy have very little freedom to do what benefits them; it benefits the government.