Did you know that there are 4 different economy systems?
Well, what are they?
Mixed Economy System
Because our nation has a mixed economy, I can run the business I've always dreamed of!
Free drink of choice with meal!
Yeah, you can. Just as long as it follows the government's mandatory business regulations.
Gov Rules and Regulations
Market Economy System
I own this whole establishment and all of the other malls in this nation!
I know! Your stores have put me out of business!!! The government should do something about this.
Sorry. No government intervention.
There are 4 Economic Systems: Mixed, Command, Traditional, and Market.
Command Economy System
So, what you're telling me is that I can't run my own business? How is this fair? 1
It's fair because we provide you with everything you need for next to nothing! It's affordable and makes it easier for the government to regulate things. 2
A mixed economy system gives economic power to both the government and the public. This system is great to use because it allows private and personal decisions to be made by the public, while making sure they don't abuse their power through government regulation. The downside is that an unequal poverty risk comes along with it. This system is commonly used in the USA.
Traditional Economy System
We grow/make our own produce and trade with each other to meet each others needs!
Unlike a mixed economy, a market economy system is run by the people and has no government intervention at all. This allows people to make private and personal decisions freely, without having to follow any government rules and regulations. The downside is that because people are free to do as they please, there is no one to stop them from creating monopolies. This system is used a lot in Hong Kong and Singapore.
Wow! I learned so much. Thx!
A command economy system is ran completely by the government and gives the public no economic power. Though this is good because it's more stable and causes little to no shortages of supplies, it can take a turn for the worse if the government becomes unfair or unstable. This system is used in North Korea and a lot of other communist societies.
You won't even need your own business since we're giving you money. 3
What about my wants? 4
A traditional economy system is a system of trading. People grow and create things to use. They also trade these things with other people to get other wants and needs. This is great for the environment because it creates little to no surplus. The downside is that this system is very old-fashioned and traditional, leaving no room for outside influences and growth. Places that are big on agriculture like Africa often use this system.
And I grow grains and raise cattle!
I grow fruits and vegetables!
These are the 4 economic systems. They all have their differences (pros and cons), and all work for different types of people. One that works for the poor may not work for the rich and vice versa. Some may work for both. At the end of the day, it all depends on what's good for you.
Np. Tomorrow, we're learning about the 3 basic economic questions that must be answered in order to produce and sell things. I'll tell you all about it after class.