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The Economic Systems

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Mapa Mental sobre The Economic Systems, criado por Dayna Hazime em 28-05-2013.
Dayna Hazime
Mapa Mental por Dayna Hazime, atualizado more than 1 year ago
Dayna Hazime
Criado por Dayna Hazime mais de 13 anos atrás
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Resumo de Recurso

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

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