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Economic Systems by Mind Map: Economic Systems

1. Traditional

1.1. products, services, and jobs that are a part of the culture, customs, or religious beliefs

1.2. Traditional: Inuit or South India (Tea Plantations)

1.3. Pros: Things have a meaning that is passed down

1.4. Cons: Little to no room for innovation

2. Command

2.1. This type of system is a step away from traditional - everything in the economy is controlled by a centralized party or government.

2.2. Communist Governments: China and Russia

2.3. Pros: Everyone has a job to do

2.4. Cons: Makes enough money barely for necessities

3. Mixed

3.1. Also known as a dual economy. Is a form of a free but also command economy.

3.2. Capitalism: The United States

3.3. Pros: Freer to create products and services

3.4. Cons: The government has laws and ordinances that must be followed

4. Free Market

4.1. a economy where the people are free to create businesses and ideas with no interference from the government

4.2. True Free Markets: Canada, Japan, England

4.3. Pros: No brain drain or loss of ingenuity

4.4. Cons: With more freedom and less restrictions there is more power for individuals - no system of checks and balances.

5. Importance of the Economic Ecosystem

5.1. Without a economic ecosystem in place the government or the people who live in the region could overthrow it or have to much control. Economic ecosystems determine the supply and demand for the most point, our currency value, and how we survive without one we would all essentially be living in a survival of the fittest type setting predating even the traditional economic system.