112809
Description
Mind Map by Dayna Hazime, updated more than 1 year ago
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Created by Dayna Hazime
almost 12 years ago
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The Economic Systems
- Market Economy
- Private ownership of resources.
- Freedom of enterprise and choice
- Competition
- Limited government intervention
- Consumers' sovereignty
- Price system
- Advantages
- Economic freedom
- Production according to needs of consumers
- Efficient utilization of resources
- Variety of consumer goods
- Enhanced trade, business, research and development
- Automatic incentives
- Economic freedom
- Disadvantages
- Lack of social welfare
- Misallocation of resources
- Inflation and unemployment
- Inequality of distribution of wealth and income
- Unnecessary variety and wasteful competition
- Lack of social welfare
- Private ownership of resources.
- Command Economy
- Public ownership of resources
- Central planning authority
- Price mechanism of lesser importance
- Central ownership and control
- Advantages
- Production according to basic needs
- Equal distribution of wealth and income
- Better allocation of resources
- No serious unemployment or recession/ inflation
- Social welfare
- Rapid economic development
- Production according to basic needs
- Disadvantages
- Lack of incentives and initiative by individuals
- Absence of competition
- Waste of economic resources
- Loss of economic freedom and consumer sovereignty
- Lack of incentives and initiative by individuals
- Public ownership of resources
- Mixed Economy
- Public and private ownership of resources
- Government helps to control income disparity
- Price mechanisms and economic plans
- Co-operation between government, public and business sectors
- Government intervention
- Public and private ownership of resources
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