ECONOMIC SYSTEMS

TRADITINAL ECONOMY

• Oldest and most simple system
• Rely on habit customs and rituals
• Revolves around a family unit
• Agriculture is determined by peoples traditions
• Bangladesh has a traditional economy

TRADITIONAL ECONOMIC ADVANTAGES

• People have the freedom to make what they need and want.
• Production in very stable.
• Goods and services are produced very efficiently.

TRADITIONAL ECONOMIC DISADVANTAGES

• Natural disasters leave nothing to rebuild from.
• These countries don't grow as much as other countries.
• Lack in advanced technology.

MARKET ECONOMY

• Choices are made by the people.
• Voluntary exchange in markets.
• Entrepreneurs invest in businesses
• No country solely runs under a market economy alone.

MARKET ECONOMIC ADVANTAGES

• People have free choice to make their own decisions.
• Everyone participates in a chosen job.
• The economy runs itself solely under a market.

MARKET ECONOMIC DISADVANTAGES

• Market has no regulations against goods and services
• Markets have no security
• Unhealthy competition between goods and services.

COMMAND ECONOMY

• Also known as a centrally planned economy
• The government controls everything
• No consumer sovereignty
• North Korea runs under a command economy

COMMAND ECONOMY ADVANTAGES

• Everyone has a job
• Government keeps factories working effiecently
• Prices of goods and services are regulated

COMMAND ECONOMY DISADVANTAGES

• Factories may corrupt
• No competition between different goods and services
• No individual freedoms for the people

MIXED ECONOMY

• A combination of all the three economies
• Runs under a circular flow model between household, government, and firms
• The United States runs under a mixed economy

MIXED ECONOMIC ADVANTAGES

• Even balance between all three economies
• Individual freedoms for the people
• Government snd security regulations

MIXED ECONOMIC DISADVANTAGES

• Lack of maintaining specific goods and services
• Lack of traditiom between individual groups