Economic Systems - created from Mind Map

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Traditional

Market

Mixed

Command

Cons

Pros

Examples

Definition

They lack access to technology and modern medicine.

They produce only what's required for them to survive.

Traditional economies tend to rural, second and third world, they typically are farmers and hunters

A Traditional economy is a system that depends on traditions, customs, and beliefs help shape the goods and services.

Examples

Definition

Pros

Cons

The law of supply and demand prices Employees require higher pay

In the market economics there little to no involvement from the government and all decisions are based on investments, production, and distrubtion

consumers are wiling to pay higher businesses encourage innovation

Competition is cut-throat for employees in this market which could lead to difference in pay scale

Cons

Pros

Example

Definition

First, It's difficult to keep a balance businesse and government around policies and regulations. Government can up the taxes onto products and businesses to make up for deficit. Second, it could leave some people in society without government support

The government has less control which protects the market and the people. Second it distributes goods and services where required

There's no single government in control. The world organizations implemented rules and said agreements.

A Mixed economy includes three economic types which include traditional, command and market. In addition, it doesn't deal with the disadvantages.

Cons

Pros

Definition

Example

In command economic its hard to provide for everyone not enough of one thing and sometime they might over commit since things are created for the people. In addition, workers apply for jobs deemed by the government

If done right plans can be executed on massive scale and meet societal goals, create industrial powers.

In a command economy control is provide by the government. The government in involved in all things planning to distributing resources e.g, utilities and aviation. In addition, Supply and Demand does apply and traditional customs are ignored

The government creates majority of the jobs and provide goods and services.