ECONOMIC SYSTEMS

TRADITIONAL ECONOMY

• relies on the people to decide the 3 key economic questions
• Also relies on tradition
• Countries: Africa, Asia, South America, Middle East

ADVANTAGES

• No restricted government
• No waste
• Culture
• Everyone has a role

DISADVANTAGES

• Natural Disaster
• Lack of growth
• Limited amount of resources

MARKET ECONOMY

• Consumers and producers decides the 3 economic questions
• Brazil, Russia, India, China, Mexico, South Korea, Turkey

ADVANTAGES

• Healthy Competition
• Freedom
• Market regulates itself

DISADVANTAGES

• No regulations
• No protection for consumers
• Unhealthy competition

COMMAND ECONOMY

• A centrally planned economy
• Government decides 2 economic questions
• Countries: Cuba, North Korea, Former Soviet Union

ADVANTAGES

• Low unemployment rate
• Very efficent
• Everyone is provided for

DISADVANTAGES

• Corruption
• No competition
• No freedom

MIXED ECONOMY

• Market-based system in which government is involved to a limit
• Countries: United States, Canada, Australia, Japan, Germany

ADVANTAGES

• High standard of living
• Personal freedom
• Safety Net

DISADVANTAGES

• Maintaining a balance
• No traditions

THE END!