Mind map

Different types of economic systems

sofia bobadilla Inglés TOEFL Spanish

Map content

What is an economic system
- coordinating the production and consumption of goods and services
- Podution
  - What will be produced?
  - How will it be produced?
  - For whom will it be produced?
- We are an economy
Different goals of an economic system
- Economic freedom
  - free control about our money
- Economic Effiency
  - goods of production are distributed
- Economic Equity
  - be fair in economy
- Economic Growth
  - my income incrase
- Economic Secutity
  - having stable income
- Economic Stability
  - my money arrives regularity
- Environmental sustainabitily
  - basis for all
Traditional economy
- Is based in customs and traditions
- Often provide economic security
- Rarely achieve the goals of economic freedom, economic growth and a high standard of living
Command economy
- Determined by goverment
  - What to produce
  - How to produce
  - For whom to produce
- Can provide economic security
- Limit economic freedom
- Fares poorly in terms of economic efficiency
Market economy
- Is based on supply and demand
- Decide what to produce & what to buy
- Give people more economic freedom
- Do not do very in terms of economic security.
Mixed economy
- government and individuals important roles in deciding
  - How much to produce
  - What to buy
- More equitable than market economies
- Can differ greatly from each other