❊Economy❊
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You've probably never really thought about how rich your country is. But the truth is, it plays a big role in your daily life
without you even noticing. The way you buy your groceries, the types of stores you go to, it all has to do with economy! Different countries have different ways of managing their economies and deciding who will control business, kind of like government. |
This video briefly explains the four types of economic systems-CREDITS: @unowacedemics
COMMAND
In a command economy, economic decisions are made by the government. Cuba, North Korea, and the soviet union have a command
economy. In a command economy, you cannot decide anything. You MUST follow the government. Its a very controlling type of economy. Three questions must be answered in every economy. They are what to produce? How to produce? and For whom to be produced?
In a command economy, the government decides what is needed to be produced. They produce the way the government thinks is the best way to produce. They produce for whom the government wants to produce.
economy. In a command economy, you cannot decide anything. You MUST follow the government. Its a very controlling type of economy. Three questions must be answered in every economy. They are what to produce? How to produce? and For whom to be produced?
In a command economy, the government decides what is needed to be produced. They produce the way the government thinks is the best way to produce. They produce for whom the government wants to produce.
TRADITIONAL
You may think of the traditional economy as one the indians or people in the colonies would be operated by. It mainly revolves around tradition and custom. It's not a very modern system at all, not one you would usually find. Remote villages and India, and African tribes have a traditional economy. People make things handmade, and trade. They produce only what is needed. As of a market economy produces fun things like jewelry or electronics, but that wouldn't be the case for a traditional economy. Because it is not needed. They produce the way it's always been done in their country, and they produce only for the people in their society.
MARKET
This is personally my favorite form of economy, and its the kind the USA has! In this type of economy, citizens are free to make decisions for themselves. They can start any kind of business at anytime, and decide how they will make money for themselves. Consumers decide what is produced by what they purchase. Producers determine how goods and services will be produced. They want the most economical way and ONLY the most efficient way will stay in business. They produce according to the wants and needs of the consumers (command), and they produce for...you guessed it...the consumers.
MIXED
A mixed economy is exactly what it sounds like, a mix between command and market economies. Some countries have this economy to protect consumers and be economically successful. One country that has a mixed economy is China. It's basically where producers still have freedom, but the government still sets rules and watches over the production thats going on outside of their ultimate control.