1. Free-Market Economic System
1.1. The free market is an economic system based on supply and demand with little or no government control.
1.1.1. Features
1.1.1.1. Individuals have total rights to own or control the means of production, distribution, and exchange of goods with the least control of government.
1.1.1.2. Freedom in owning and participation, it's totally voluntary. Companies or individuals are free to acquire, consume, or produce as much or as little as their own needs require.
1.1.1.3. Financial Market works strongly because of the presence of financial institutions such as Banks and brokerages, they often give individuals and companies the means of goods and services bonus investment services.
1.1.1.4. Economic questions often answered by individual buyers and sellers
1.2. Advantages
1.2.1. In a free market economy, business owners can come up with new ideas based on the consumers’ needs. They can create new products and offer new services at any time they want to.
1.2.2. The consumers are the ones who have the voice, they are aloud to decide which products should become a success, which ones fail and the consumer also influences the price set on a product.
1.2.3. The innovation among different private companies can lead to competition as every company tries to improve on the features of its products to make them better and this makes the market more harsh but it will also be a place where qualified people will have a chance to get rich.
1.3. Disadvantages
1.3.1. At times, a free market economy can spin out of control, causing dire consequences. Market failures can lead to devastating outcomes such as surplus, homelessness, and lost income.
1.3.2. Companies often forced their workers work exceeding the permitted limits and it threaten the safety of their workers or disregard environmental standards and ethical conduct in order to make supernormal profits.
1.3.3. Because the state management system is not tight, there will be illegal transactions somewhere in the business market such as (illegal substance smuggling, rare animal smuggling, etc.). ....)
1.4. In the case if I open a sushi restaurant, I determine the rice, fishes and ingredients but the government will be checking the qualities of them. Additionally, I will provide the government the number of employees and the working time and the government will set the minimum amount for them.
1.5. At the moment, there are a lot of countries that follow Free market economic system, some particular countries are : Hong Kong, Switzerland, New Zealand, Australia,...
2. Command Economic System
2.1. Command Economy is a system in which the government controls all facets of the nation’s economy.
2.1.1. Features
2.1.1.1. The government creates a central economic plan to set economic and societal goals for every sector and region of the country.
2.1.1.2. The government sets the priorities for the production of all goods and services that includes quotas and price controls.
2.1.1.3. The government creates laws, regulations, and directives to enforce the central plan.
2.1.1.4. The government answer the economic questions.
2.2. Advantages
2.2.1. The government can quickly mobilize economic resources on a large scale.
2.2.2. The government can execute massive projects, create industrial power, and meet social goals.
2.2.3. Nationalizing companies to placing workers in new jobs after a government skill assessment.
2.3. Disadvantages
2.3.1. They often produce too much of one thing and not enough of another
2.3.2. Goods production is not always matched to demand, and poor planning often leads to rationing.
2.3.3. Innovation is discouraged and leaders are rewarded for following orders rather than taking risks.
2.4. Cuba, North Korea, China and the former Soviet Union are examples of countries that have command economies (China was a command economy for decades before transitioning to a mixed economy that features both communistic and capitalistic elements.)
2.5. In the case I open a noodle restaurant, I don't have the right to determine anything and the government will determine the quality, salary for my workers and their working hours instead.
3. Mixed Economic System
3.1. It's a market system of resource allocation, commerce, and trade in which free markets coexist with government intervention.
3.1.1. Features
3.1.1.1. This system is organized with some free market elements and some socialist elements.
3.1.1.2. The citizens can maintain private ownership and control of most of the means of production, but often under government regulation.
3.1.1.3. Mixed economic system socialize selected industries that are deemed essential or that produce public goods.
3.1.1.4. In mixed economic system, the government and the owners both together answer the economic questions.
3.2. Advantages
3.2.1. They distributes goods and services to where they are most needed, it allows prices to measure supply and demand
3.2.2. The system give the most efficient producers back the highest profit, therefore the customers get the best value for their dollar and it encourages innovation to meet customer needs more creatively, cheaply or efficiently.
3.2.3. The expanded government role also makes sure less competitive members receive care. That overcomes one of the disadvantages of a pure market economy which only rewards those who are most competitive or innovative.
3.3. Disadvantages
3.3.1. For the government to provide the public-sector services that are required for businesses, it requires monetary funding and those funds are generated through some type of tax policy.
3.3.2. When government interventions are permitted within an economy, it creates the potential for special interest influence. Instead of doing what is required for the benefit of all, the government intervenes based on the influence of the highest bidder.
3.3.3. One of the greatest dangers of a mixed economy is overdevelopment within the centralized planning of the public sector.
3.4. In the case that I open a hamburger restaurant, I have total rights to determine the amount of ingredients, meet, vegetables that will be combine to make a hamburger. I can also set the wages and working hours for my employees.
3.5. The significant countries that have mixed economic system are Iceland, Sweden, France, the U.S, the U.K, Cuba, Russia and China.
4. Traditional Economic System
4.1. Traditional economy is an economic system in which traditions, customs, and beliefs help shape the goods and services the economy produces.
4.1.1. Features
4.1.1.1. Fishing, hunting, agriculture,....
4.1.1.2. The economic questions often answered by habits and customs ( The way products have been made)
4.1.1.3. Kids were trained since they were little, therefore they work along with their parents to improve the income to feed their families
4.1.1.4. They often do trades instead of money
4.2. Advantages:
4.2.1. This system helped keeping society together and functioning for generations.
4.2.2. Little or no friction between members because everyone know their contributions and the awards after their productions are made get divided clearly .
4.2.3. Since traditional economies are small, they aren't as destructive to the environment as economies developed.
4.3. Disadvantages
4.3.1. Exposed to changes in nature and weather patterns.
4.3.2. Vulnerable to market or command economies that use up their natural resources.
4.3.3. It's tough to get wealthy in this type of system, because everyone just make what they need and the income is virtually enough to maintain a regular daily life