Economic Systems

Economic Systems

1. Command Economy

   • In this economy the government decides what product to produce, how much to produce, and how much the product should be worth.
     • The command Economy is the factor in the communist Society
       • The advantages of the command economy
         • In the command economy the government is able to mold large amounts of projects and resources with having to deal with lawsuits or have environmental regulatory issues.
           • The government is able to manipulate a society to how they want that society to be.
             • The disadvantages of the command economy
               • The needs of an society can be ignored just rapid change and poor planning.
                 • The production of goods don't always on hand and hand with with the demand and rationing is caused to do insolvent planning.
                   • In this economy the rewards are to the leaders that follow orders and not for taking risk.
                   • At global market prices this economy tends to Struggle to produce the right exports.
                 • Demand is not controlled or measured.
                   • When rationing is necessary
               • The productions of resources are not balanced out , there can be a lack of one resource and to much of another.
               • The central plan set the prices
           • On a large scale resources are quickly mobilized.
           • Social goals, industrial power, and massive projects can be liquidated.

2. Traditional Economy

   • This economy focus on belifs, history, and customs.
     • The advantages of the Traditional economy
       • This economy is either family or tribal oriented, which means that the input of the elders are put into effective in order to make sure that daily taks are completed with the ensurance of the stablizing the economy.
       • Tis economy is very basic and simple.
         • In this economy different roles are specifically conducted by individuals.
           • To met quota and the needs of the people in the economy are meet , people work their specific roles.
           • Trade is something that that is not required which allows all the resources to be used to meet the needs of the economy in order to survive.
       • The disadvantages of the traditional economy
         • this type of economy people are being isolated
         • There is less economic growth due to this economy being local.
         • Advancement and change is strongly resisted because change can become a threat to survival in this type of economy.
           • There are health risk invovled with being an isolated economy.
             • Unpredictable circumstances can negatively affect this type of ecnonmy.
   • This economy relies on gathering, hunting, agriculture, etc

3. Mixed Economy

   • In the mixed economy there is a mixture of the market, command, and traditional economies.
   • The advantages of the Mixed economy
     • Goods and services are dispersed where they are needed
       • Prices meet supply and demand.
     • Customers get the best value of their buck.
   • Disadvantages of a mixed economy
     • To much freedom is in this market.
       • Which can lead to society without any support from the government due to them being less competitiv
     • Problems can evolve due to central planning from the government.
     • The ability for government to become a denfense industry that could not only put the country in debt, but can also slow down the the growth of the economy.

4. Free Market

   • An example of the free market is how consumers low for the lowest prices in the goods and services that are needed
     • The United States Is in a Free Market economy.
   • here in the free market economy capital, labor, and natural resources are part of the supply chain,
   • The Advantages of the economy
     • Supply and demand functions freely.
     • Goods and services that are high in demand are produced
     • The consumer having the desired for a good or service and willing to pay for that service and good at a expensive price.
       • Businesses produces products that make a profit.
     • Goods and services are produced efficient

5. TThe reason why it is important to have an economic system is to better the way of living in societies

Images and files in the map