17772882
Description
Mind Map by Andrew Zamora, updated more than 1 year ago
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Created by Andrew Zamora
about 5 years ago
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Economic Systems
- Command Economic System
- Government
operated and
businesses are
closely monitored
by the
government
- Economies with
large amounts of
natural resources
will usually have
this type of
Economy
- Allows the
government to step
in and regulate the
resources that are
being produced
- Could be a very well run
economy if the
government uses the
resources correctly and
efficiently
- Also known
as a
Communist
Economy
- Government decides
what will be
produced and how
much of certain
goods will be
produced at any
given time
- Government
operated and
businesses are
closely monitored
by the
government
- Traditional Economic System
- Focuses on Goods and Services that
directly impact their beliefs
- Relies heavily on the individuals
that contribute to the economy
because the jobs done are required
to maintain society
- Still used today by many undeveloped
2nd and 3rd world countries
- Economy is usually operated by farmers and other traditional activities
- This type of Economic system
usually does not produce a
surplus of goods which limits
the amount of trading
capabilities
- Focuses on Goods and Services that
directly impact their beliefs
- Market Economic
System
- Relies heavily on
free markets and
has very little to
no government
interference
- This type of economy is
regulated by the laws of
supply and demand
- Businesses are
individually owned
and operated which
promotes competition
and small business
ventures
- Economy could
experience large
amounts of growth
because of the ability
to have free markets
- Keeps the government
and economy separate
which leads to some
private parties
becoming very wealthy
- Also known as
Capitalism
- Relies heavily on
free markets and
has very little to
no government
interference
- Mixed Economic System
- The United
States has a
mixed economy
- Mixture of a
market and
command
economic
system
- There are both
private sectors in
business and
some small
government
operated
businesses
- Still allows for the
market system to
regulate itself and
promote the laws
of supply and
demand
- One small disadvantage
is that half the economy
is run by the private
sector and the other half
is by the government
- Has been adopted
by most Western
civilizations
- The United
States has a
mixed economy
- It is extremely important
for every society to
utilize one of these
economic systems to
ensure the proper
distribution of goods and
services
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