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The Economic Systems

Description

Mind Map on The Economic Systems, created by Dayna Hazime on 28/05/2013.

Mind Map by Dayna Hazime, updated more than 1 year ago

	Created by Dayna Hazime over 12 years ago

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Resource summary

The Economic Systems

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

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