Economic Systems

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Economic Systems by Mind Map: Economic Systems

1. Captalism

1.1. Owners not the government have control of their own businesses & profit (Nickels, McHugh & McHugh, 2019).

1.1.1. Owning my own private business or having private property. PROS: Freedom of choice that creates a free-market. Creates innovation & competition within industries. Creates more jobs & decreases the unemployment rate. CONS: Creates inequality among the classes. Creates corporate greed & monopolies (Nickels, McHugh & McHugh, 2019).

2. Socialism

2.1. Government has some control over businesses so profit can be distributed equally among the people (Nickels, McHugh & McHugh, 2019).

2.1.1. Sweden's healthcare & education is a socialist program & policy. PROS: Through government programs & policies promotes social equality. Government regulations help to protect the environment & providing support for people in need. CONS: Super high tax rates that discourages business owners which causes "drain brain" (Nickels, McHugh & McHugh, 2019).

3. Communism

3.1. Government has complete control over political & economic decisions (Nickels, McHugh & McHugh, 2019).

3.1.1. North Korea's government has complete control over their people in how they behave. PROS: I do not see any benefits to this type of economic system. CONS: Since the government controls the market they do no know the supply and demand so they take a guess on what the people need. This can cause shortages of daily living essentials. This also does not provide incentives for people to start their own business (Nickels, McHugh & McHugh, 2019).

4. Importance of Economic System

4.1. "Economics is important for many areas of society. It can help improve living standards and make society a better place. Economics is like science in that it can be used to improve living standards and also to make things worse. It partly depends on the priorities of society and what we consider most important" (, 2008).