Introduction
Hey people!
Today we are going to take a look at the economic systems, their definition, and their benefits.
Task
How many economic systems exist? Four types
What are their names? Traditional economy, command economy, market economy, and mixed economy.
Process
Traditional Economy? s a system where goods production and distribution are driven by time-honored beliefs, customs, culture, and traditions. These countries rely mostly on agriculture, gathering, hunting, and fishing. The barter system is characteristic of traditional economies.
Command economy? an economy in which production, investment, prices, and incomes are determined centrally by a government.
Market economy? an economic system in which production and prices are determined by unrestricted competition between privately owned businesses.
Mixed economy? an economic system combining private and public enterprise.
Evaluation
Advantages of traditional? it answers to WHAT, HOW, and FOR WHOM to produce are determined by customs and tradition. Everyone know what role to play.
Advantages of command? low levels of inequality and unemployment and the common objective of replacing profit with equality as the primary incentive of production.
Advantages of market? little government intervention, allowing private ownership to determine all business decisions concerning how a business is run. This type of economy leads to greater efficiency, productivity, and innovation.
Advantages of mixed? efficient production and allocation of resources, as well as improvement of social welfare.
Conclusion
These four economic systems are different.Despite their differences, they have the same goal: To maintain a strong economy by providing stable prices, full employment, and economic growth.
Credits
https://www.fte.org/teachers/teacher-resources/lesson-plans/rslessons/e….
https://www.wallstreetmojo.com/traditional-economy/#:~:text=What%20is%2….
https://www.investopedia.com/ask/answers/100314/whats-difference-betwee….
https://www.investopedia.com/terms/m/mixed-economic-system.asp#:~:text=….
https://www.investopedia.com/ask/answers/100314/whats-difference-betwee….